Comments from BOE Governor King that the weaker pound will help rebalance the economy toward exports and that UK banks remain in very poor shape. He also downplayed the vigor of the UK economic rebound, saying it is very small after a very large contraction.
EUR/GBP resumed its climb and made a new high for the move at 0.9137. This helped drag EUR/USD up with it and has prompted short-term bears to throw in the towel after follow-through below 1.4700 was non-existent after last night’s stop-running exercise in early Sydney.
1.4840 remains a very tough nut to crack with barriersat 1.4850 and 1.4865, the September 2008 high just above.
Next up for the market is weekly jobless claims (+550) and existing home sales from the US (+2.0%).
