The pound/dollar lost its momentum after weak UK construction activity data came out. Then the fall gathered pace after positive stats came out of the US and Yellen made a speech.

One thing for sure isn’t clear: why is everyone throwing pounds in before the ECB meeting when everyone expects a further relaxation of monetary policy? I understand that the BoE is in no rush to put up its rates, but as I see it, the pound was being sold too much yesterday.

The pound/dollar fell to the D3. Today trader attention is on the ECB. There are no forecasts from me for today and tomorrow; I do not see the point in making them. The fundamental news is set to smash the technical and fundamental signals.

 

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