GBP under pressure.

Following yesterday's interest rate decision the GBP has been sold, compounded by today's mildly disappointing retail sales.

Although the BOE statement was not particularly 'dovish', the two 'dissenters' previously voting for a rate hike have changed their mind. And the market now thinks a June rate cut is a possibility, moved forward from August at the earliest.

Elsewhere, HSBC bank think the swiss franc (CHF) will once again become the funding currency of choice for the carry trade, given the surprise rate cut yesterday. Which backs my thought of reintroducing the CHF as a currency to trade, at least whilst there is uncertainty surrounding the JPY (more comments overnight about carefully monitoring currency moves).

The USD is on the front foot today, in my opinion due to the inflation information inside yesterday's PMI data (still signs of sticky inflation ahead). Chair Powell has a scheduled speech today. If his message isn't perceived as 'dovish', there could be the opportunity of a 1:1 USD long trade to end the week. And the potential the USD will remain strong into next week.

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