Mervyn King aka Merve the Swerve will be speaking over the next couple of days and The Bank of England is expected to give a gloomy assessment of Britain’s short-term prospects this week, forecasting weak growth and high inflation
This has been the case viewpoint-wise for a while and while they are quite correct the market was heavily positioned short and we have seen sterling recover dramatically; I stand by my view that we may see further gains before the market renews it’s negative view and momentum.
If we can get through the 1.60/1.61 I believe we will quickly target 1.65; I am also a buyer of dips in GBP/AUD towards 1.71 looking for a retest of 1.82 – usual problem is it is expensive being short AUD
