The Pound has been largely left out of the significant overnight volatility being seen in the Euro, Swiss and Dollar. However, the Pound remains vulnerable to selling, as the BOE overnight indicated that they remain”open minded toward policy” as that in turn tempers the hope for rising UK rates. The Pound might also be seeingsome minor pressure from political events, as there is talk that Cameron might be set to lose a seat to the anti-EUblock. Pushed into the Pound we favor the downside but support at 1.56 might hold.
