Talk that a UK clearer has been executing a rather large EUR/GBP buy order and this is being given as part of the reason for the sharp sell-off in cable. As mentioned in earlier commentary EUR/GBP buy interest had been noted at the 09:00 GMT fix.

Cable has slumped to 1.6110, EUR/GBP up at .8765 having been as high as .8777.

EDIT: TALK HAS IT THAT THE EUR/GBP BUY INTEREST HAS BEEN IN REGION OF EUR 2 BILLION

Suffice it to say, it’s been a hefty interest whatever the actual amount.