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"The UK will release several inflation-related figures on Tuesday, expected overall weak, which therefore should prevent the British Pound from advancing further."
- Valeria Bednarik (based on FX Street)
Pair's Outlook
The Sterling keeps surprising, as it edged up on Monday, instead of slumping versus the US Dollar. Even though there were in fact fluctuations to the downside, the Cable still added 31 pips, but was unable to erase Friday's losses. Moreover, the 1.47 area was not reclaimed, and the pair is likely to retreat further away from this level today. The technical studies remain mixed, but a fall at least to 1.46 is a high possibility amid the fear of deflation in the UK.
Traders' Sentiment
SWFX traders' outlook towards the Pound worsened again, with long positions now taking only 42% of the market (previously 43%). The number of buy orders decreased as well, now they account for 46% of all commands.
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