MARKET COMMENTS ON FOREX

In any case, a more two-way market is likely to develop before long. A no-cut decision today could see a sharp brief rally in GBP crosses. The GBP would likely spike sharply lower on a surprise cut, but would probably then rally sharply from lower levels as the heavy GBP short position has to start considering the idea of profit taking soon. The GBP would likely spike sharply lower on a surprise cut a bit higher perhaps than consensus.
The GBP would likely spike sharply lower on a surprise cut a bit higher perhaps than consensus. The GBP would likely spike sharply lower on a surprise cut a bit higher perhaps than consensus. We rate the chances for a surprise cut a bit higher perhaps than consensus. The ECB press conference today is critical for determining whether the market tips its hat to Trichet's resilience with a EUR Rally or whether it disapproves of the pain from tight credit on this overly debt-burdened economy...