Forex Flash: Sterling posed for further weakness – Rabobank

The pound continues to trade in the region of 1.5470/75 on Monday, level last seen in July 2012, thus extending its decline further from year highs above the 1.63 figure. The descent has accelerated after last week’s dovish speech by M.King, which signalled that UK inflation levels would be above target for the next couple of years and a weaker pound is necessary for rebalancing the economy.

After the last CFCT COT report, Jane Foley – Chief Currency Strategist at Rabobank – commented, “Sterling positions have plunged into negative territory. This confirms the poor sentiment surrounding the pound, which has been clearly evidence in the spot market. Positions are at their weakness since June 2012”.