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.
The Bank of England, last week, announced no further measures to support the British economy. But for a technical bounce and possible bidding on a strong EUR/USD, the Sterling remains poised to weaken further. The true extent of the decline will be made aware once the Bank of England announces another round of easing.
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.
