An end to GBP strength?
After gaining 3.1 percent in the past 3 months against a basket of other currencies GBP has now entered its third consecutive day of losses falling below 1.1700 versus Euro and below 1.6100 versus US Dollar.
Without any particularly negative data impacting GBP it appears that it is simply falling out of favour as the market considers the falling probability of monetary tightening (reduction of stimulus) from the BoE at next months MPC meeting. It has long been conjectured that once the Fed start to reduce stimulus (taper), then the UK would follow suit.
This afternoon sees a raft of US data but this is likely to be quickly forgotten as the market positions itself for the Fed FOMC meeting tomorrow evening.