Sterling to remain under pressure.

Most analysts expect the Bank of England to cut rates at its next meeting in August. I also expect this. After narrowly avoiding a cut in July (5-4 vote), the economy has shown signs of slowing and with the terrorist attacks the smart move would be to act in August. This will leave the pound under continued pressure in the short term. I am short and will stay that way for the near term.

Asian currencies have given back some of their gains after the Chinese revaluation. Hopes that the Yuan would appreciate quickly in the near term have eroded and it looks like a slow (if any)gain in the yuan will be the outcome.

FXTradingideas@AOL.com