BBH - "Sterling made a new low for the move, to bring its loss against the dollar since January 2 to 5.6%. How much worse can the news get for the sterling? It is not simply the retail sales report. Most of the economic data has disappointed. The economy remains stagnant or worse and fiscal policy remains pro-cyclical. King says more monetary easing can be provided if needed. Hello? Where is the bar? If it is not needed now, under what conditions would it be needed? King welcomed sterling's weakness, suggesting that it was helping the UK, though inflation will likely remain above target for the next two years. Sterling has already traded on both sides of yesterday's range as the North American session gets under way. A close above $1.5545, roughly yesterday's high would be a technically constructive development. If sterling cannot sustain downticks on a poor news stream, it is at least flashing a yellow light, warning that bears should be cautious. We had suggested a technical objective near $1.53. Sterling has moved within 1% of this target by declining a little less than a dime this year."