Not really...the market hasn't reacted that way although it may have put a brake on further EURO and GBP buying. The market reacts to the latest fundamentals as they are released. The core PCE has been analyized by BB as being dis-inflationary and the market has confirmed this so far. A rate increase from the Fed isn't on the horizon in the short term, while a B0E raise still is very much in play and in my opinion, that's what's driving this market.
I really think traders will be focusing on the UK home prices and all the indications are for further increases there while over here, economists are still debating whether a bottom in the housing market has been reached or will be in the near term.
There is a call for a BoE increase from many places; the NIESR and economists from the London School of Economics...former BoE members...the house prices tom would only further confirm that thinking (which is all but a cetainty anyway)...so in the near term a diverging interest rate picture is in play for GBP/USD.
I really think traders will be focusing on the UK home prices and all the indications are for further increases there while over here, economists are still debating whether a bottom in the housing market has been reached or will be in the near term.
There is a call for a BoE increase from many places; the NIESR and economists from the London School of Economics...former BoE members...the house prices tom would only further confirm that thinking (which is all but a cetainty anyway)...so in the near term a diverging interest rate picture is in play for GBP/USD.