EUR/GBP is the main play here with heavy short-covering by some big players driving the market. We can also expect the usual Sovereign demand later tonight for the BOE’s end of month payments. This should keep cable fairly soft intraday but remember that every time we’ve gotten close to 1.60 recently, China’s been buying.
Play close to the edges of a 1.6025/1.6275 wide range in the cable and sterling bulls should probably wait until next week before trying to short the EUR/GBP as we don’t know when the heavy buying will cease.
