The British Pound drifted lower last week even after the BOE surprise rate hike, in similar fashion to the yield on Gilts the timing of the move may have surprised most pundits but it was clearly built into the price of both the FX and credit markets. We still believe the Pound (referred to as Cable in FX circles) can take another leg higher towards the 1.6000 area but its unlikely while the $US can hold firm around current levels.
MM’s remains bullish the Pound as it drifts lower
