We are impressed with the initial action in the Pound today as it has managed to claw out some gains despite CBI November retail sales data that could have undermined the currency. In fact, UK CBI retail sales fell by 3 points but that news was clearly countervailed by very strong expectations for retail sales in the coming month. As suggested in Dollar coverage today, the Dollar is showing less dominance and that clearly opens up the door for the Pound which has relatively stronger fundamentals than the Swiss, Euro and Yen.
