Stops below the 1.5350 level survive their brush with a near-death experience and traders have been forced to scramble to cover. Low and behold, we’re up to 1.5400. She’s a cruel mistress, cable…

Up at 1.5390 from session low 1.5375 seen after crappy construction PMI data.  Source reports real money account seen buying in recent trade.

Tacked on about 20/25 pips, presently at 1.5410.  The move comes against a backdrop of generally improved risk sentiment.  Talk sell orders gathered up at 1.5415/25.  That’s the first hurdle for cable bulls to overcome.

Leveraged managers (those playing with borrowed money to juice returns–and losses) have stops below the 1.5360 level in cable, traders report. Bids are eyed just below at 1.5350, we hear.

EUR/GBP up at .8225 from early .8180.  Not really surprising given its the last day of the month and the usual anticipation of buying related to Uk payments to EU. 

  Just getting reports Middle Eastern sovereign, who was buying cable, is also selling the cross.

Around current levels. Not thought to be overly large.  We sit at 1.5407 in rather lacklustre trade.

Earlier, buy orders at 1.5380/00 soaked up early selling pressure, session low 1.5396.

Cable down at 1.5425 from North American close Monday up around 1.5460.  General risk aversion weighing on the pairing.

UK data scheduled for today:

08:30 GMT: M4 money supply for July (final)

08:30 GMT;  Mortgage approvals for July expected 46.5k; net consumer credit expected flat; lending sec on dwellings expected +0.7 bln

Talk month end flows generally dollar postive, with strong negative signals for cable.  We’ve also got the EUR/GBP month end demand related to UK payments to EU which tends to weigh on cable.

Against this however Sean has mentioned demand to sell AUD/buy GBP to the tune of 1.5 bln aussie lined up for the London fix at 15:00 GMT (16:00 local)  Somewhat complicates matters.

Talk of buy orders clustered down at 1.5380/00, stops below there.  Sell orders noted up at 1.5490/00.

Since the middle of August cable has not strayed very far from its 200-day moving average. It has spent most of that time just above that average but did spend a few days below it last week before rallying on last week’s decent retail sales and GDP data. Today, the BCC was similarly upbeat on the outlook for the UK economy today but the pound has fallen victim to a return of our old friend Risk Aversion.

1.5446 is the 200-day average; more support is seen near last week’s lows in the 1.5475/90 region.

To await US Q2 GDP data at 12:30 GMT and later Fed Chairman Bernanke speaking from Jackson Hole at 14:00 GMT.

EUR/USD sits at 1.2713, GBP/USD at 1.5510.

Oh how I hate month end flow stuff, but here we go.

Been told big US bank has put out month end rebalancing info.  They expect dollar buying with very strong signals for EUR/USD and GBP/USD.

UPDATE:  UK clearer has been notable seller of cable in recent trade. We’ve slipped below 1.5500, presently at 1.5496.

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