Pound nears downtrend resistance
The pound is the top performer today and traced out a bullish engulfing candle. That's a positive sign in the near term but it will need to string together a couple more strong days to inspire a trend.
There is no UK economic data on the schedule in the day ahead but the jobless claimant count numbers are Wednesday and retail sales are due Thursday. The latest Brexit poll from ICIM showed the 'remain' side up 54% to 46%.
For now, the story is consolidation. The market wants more clarity on the Brexit and what the Fed is doing. I fully expect the 'remain' side to win easily and for the Fed to make a more hawkish shift but that could be undermined by a drop in oil prices, which could be imminent.
