Foreign exchange strategists at Barclays expect the theme of divergence between Federal Reserve and European central bank policies will continue, especially after the latest US data. The Pound to Dollar (GBP/USD) exchange rate has already dipped to 5-month lows just above 1.2400. With potential downside risks for UK data also significant, Barclays recommends selling the Pound to Dollar (GBP/USD) exchange rate with a target of 1.21. The bank expects the US economy to out-perform Europe and relatively weak European inflation data. In this context, it expects European currencies will come under further pressure against ... (full story)