We continue to hold our short GBP/USD position despite the pair sitting near technical support. Fundamentally, the Pound is a mess: declining industrial and manufacturing production; weak growth; deflation is a threat; unemployment remains high. The British economy is stagflating, and without a global turnaround, it is doubtful the Bank of England can engineer a recovery. Should the BOE print more Sterling to stimulate the economy - an announcement that could come as soon as tomorrow's January policy meeting - the Pound will come under further pressure. Currently, it is the worst performing major this year.
Any other trade updates can be viewed in the real time news feed, or you can follow me on twitter at @CVecchioFX for trade thoughts and other macroeconomic musings.
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