The pound gets ready to meet its fate tomorrow as the market widely expects a rate cut. The pair is barely hanging on to its latest support level by a thread.
If this breaks, you'll see this descending triangle push lower very quickly tomorrow. A rate cut would be all it would take to send it falling. Take a look at the chart below.
The Pound prepares to be "pounded". 
So if there's a rate cut, even the ailing buck may catch a break when compared to the pound. That's a huge thing and tells you how weak the pound has been when the dollar is falling against almost everything known to man yet holds its own against the pound.
The ECB is widely expected to hold rates steady tomorrow. However, Trichet's comments could be the catalyst that pushes the EUR/USD through 1.59 or heading back towards 1.50.
The IMF is urging him to cut rates in order to help out the global economy's slow down. However, I expect he'll do this in the latter half of this year sometime.
Sean Hyman
Currency Director
The Sovereign Society
Comments