Note, however, that Commitment of Traders data shows specs have an all-time record short position while the commercials have taken record long positions in British pound futures -- a profile not typically consistent with a further downward trend. I ...
The first UK hard eco data from the post-Brexit referendum era have proven to be not as bad as many analysts had anticipated, ensuring a short-covering relief rally by Pound Sterling has taken shape over the past two weeks.
Despite a strong showing over the course of the week ending 26th August, GBP is forecast to record further declines against the US Dollar over coming months, while also continuing to struggle against the EUR.
"We anticipate that Yellen's speech will outline the rationale for taking another step in the policy normalisation process, but will also discuss the broader ramifications of a potentially lower equilibrium real rate.