The BOE is expected to cut rates another 50 bp to 1.5% on Thursday but the pound has been able to hold its ground, thanks to an embarassing about-face by the ECB. The ECB steered the market wrong in leading it to believe no rate cut would be forthcoming in January which hammered the pound to within 2 cents of parity with the euro over the holidays. We’ve since recovered a signficant portion of those losses and trade now at 0.9185. Earlier today we slipped all the way to 0.9100 on long liquidation.