EUR/GBP has taken on an easier tone as the USD losses some ground against the European currencies this afternoon. GBP/USD is rebounding fairly vigorously after holding support at the 1.7405/10 level. It trades now at 1.7455 after stalling near 1.7460, the 50% retracement of the day"s range. Growing jitters over the possibility of a UK rate cut over the next meeting or two were fanned overnight by the weak BRC retail sales report and call by that group for the BOE to cut rates, saying it is "badly needed". The BRC joins a chorus of voices pressuring the Old Lady to resume easing after a nearly six month pause.
0.6865/70 congestion on the short-term charts is helping contain EUR/GBP rebounds near-term. 0.6890 is further resistance. Bids are seen on dips to 0.6845/50 near-term.