I hate cable…I’ve said it before and I’m sure I’ll say it again…I goes down when it should go up and it goes up when it should go down…It goes the way you want just long enough to suck you into an all-advised punt. It’s the Devil’s currency.
After getting smacked for much of the US morning, the pound is trying to make a moderate comeback, bouncing from 1.6085 to 1.6135 before stalling. Most of the action has been in EUR/GBP with reports earlier in the day of buying from Germany, perhaps on behalf of the Bundesbank. Usually, they transact UK payments to the EU, so perhaps there is some sort of one-off flow going through today, as usually those flows take place at month-ends.
Bottom line: It could all reverse tomorrow. Stick with cleaner reads like EUR/USD and AUD/USD…
