Dollar/Pound Retraces After 5 Month Low

[PipAHolic]

U.K. Pound Advances as Decline to 5-Month Low Seen as Excessive
By Gavin Finch and Anchalee Worrachate

Jan. 8 (Bloomberg) -- The pound gained against the dollar as investors judged its recent decline to a five-month low to be excessive, and as traders reduced bets on how many times the Bank of England will lower interest rates this year.

``Much of the recent negative economic news has been priced into the market and sterling's basically taking a breather,'' said Ian Stannard, foreign-exchange strategist at BNP Paribas SA in London. ``We could even rise back toward the $2 area in the course of the next few days.''

A sustained advance by the pound may be limited as most data still point to growth in Europe's second-biggest economy slowing.

Economists in a Bloomberg survey predict the pound will fall to $1.97 by June and to $1.92 by the end of the year.

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[PipAHolic]

well, as of right now its down, going down further perhaps