Forex Flash: FX price action chippy as short term players look nervous – BBH

Brown Brothers Harriman analysts feel that the price action in the foreign exchange market is choppy as short-term participants seem nervous after being whipsawed yesterday.

They write, “Sterling fell nearly a cent to new multi-month lows following the BOE's inflation report that confirmed official expectations that price pressures will remain above target. In addition, markets reacted to his comment that a depreciation of the pound is “a necessary condition for rebalancing.” Also of note, the Australian dollar was helped by gains in a consumer confidence measure.