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"The May Bank of England minutes are likely to show all nine members of the Monetary Policy Committee were unanimous in voting to keep interest rates on hold, given that officials in the May inflation report broadly maintained their estimate of slack in the economy."
- Market Securities (based on WBP Online)
Pair's Outlook
Yet again the Sterling weakened against the US Dollar due to disappointing fundamental data. A substantial loss of 150 pips took place yesterday, but with volatility stretching out even to the support trend-line of the channel. As the exchange rate reached a powerful support cluster, a rebound is likely to occur today, while technical studies are bolstering the positive outcome. The weekly PP acts as an immediate resistance and should limit the gains.
Traders' Sentiment
The distribution between long and short positions edged closer to the equilibrium, with market sentiment still slightly bearish at 51%; whereas the number of buy orders remains unchanged at 53%.
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