The Pound also saw weakness on the dour global growth outlook which saw the sterling/dollar fall 200 pips from 1.5070 to 1.4870. Unlike the Euro the cable has had growing support as the pair took out the February 9trh high of1.4988 yesterday which leaves the 1/9 high of 1.5375 as the next barrier. Unless, we see a significant bout of risk aversion we expect the pound to continue its upward trajectory as the BoE has been ahead of the curb in providing liquidity to its markets which should start to bear fruit in the second half of 2009.
The dollar saw across the board gains during overnight trading as global growth fears were fueled by China’s weak GDP figures. U.S. markets shook off similar concerns yesterday but a source of recent optimism has been the expectations that China would rebound faster than originally expected. Now that this has been brought onto question focus will turn to the prospect of a U.S. recovery, which today’s economic docket will shed some light as we will see housing, employment and manufacturing data cross the wires.