This afternoon´s institutional research has one target very firmly in its cross hairs today... Sterling. Poor economic data has lead the currency to continue to weaken today and many analysts feel that further easing and a change to the BoE´s mandate are on the near term horizon, and combined with poor economic data, there is little reason to buy GBP at the moment.
Indecision is the theme of the day on Tuesday as the euro failed to sustain gains versus the dollar after a promising start to the NY session, where EUR/USD rallied toward 1.3074 only to fall back to the 1.3015 zone afterward. However, the Aussie is holding onto gains versus the greenback, underpinned by gold, while the pound is among the worst performers once again, weighed by disappointing data from the UK which saw GBP/USD falling its lowest levels since June 2010. Elsewhere, crosses are mostly flat on the day.