Cable has taken flight, putting the wood to shorts and filling a gap on the charts dating back to the end of February. Next resistance is at 1.5250. We been as high as 1.5117 so far.

Looks like cable was in demand at the 16:00 GMT fixing as it rebounded from a dip into the 1.5120s to make a new session high in the last few minutes. 1.5195 is solid resistance just over head.

Traders report a central bank has been a buyer on the most recent pullback in cable, buying in the 1.5130s.

A break back below the 1.5100 level will likely set off another round of profit-taking as disappointed longs cut-out before the weekend. We trade now at 1.5123.

Cable little easier on that, presently at 1.5135.

• Timing of stimulus withdrawal will be difficult decision, guided by inflation outlook
• Range of evidence that QE having desired impact, but still long way to go
• Much of impact of QE purchases yet to feed through, we’ll know more over coming year
• Tentative signs that nominal spending in economy is starting to accelerate
• When time comes policy could be tightened by rate hikes, asset sales in any order

Cable has built on earlier gains. It’s been up to session high 1.5170 so far, presently at 1.5155.

MPC’s Dale is scheduled to give speech at 11:00 GMT.

Cable has made ground this morning, bolstered by decent buying from an Asian sovereign.  The bank has recently been buying dollars against it’s home currency to help slow it’s strengthening, so what we’re seeing here is reserve diversification. Cable is up at 1.5115 having tripped aforementioned stops through 1.5105.

Cable sits at 1.5065, effectively unchanged from where North America closed out Thursday, while EUR/GBP is marginally firmer at .9093 from around .9078.

Article by AEP in The Telegraph entitled “Europe’s banks brace for UK debt crisis” will have been duly noted, but to be honest it offers nothing new at all.

No major data releases today.

Sell orders tipped at 1.5090/00, stops through 1.5105.

Interesting to note a couple of UK clearers have been sellers of the EUR/GBP cross up around .9110/20 in past two sessions. Guess not everyone is so down on poor old sterling.

Cable has broken above morning highs of 1.5062 but more resistance lies over head on the hourly charts at the 1.5085 and the 1.5110 level. Buying from US real-money accounts has helped give cable its latest boost. We’d not be surprised to hear talk of central bank buying as well, given the usual reserve diversification.

Markets are painfully slow as the European session winds up and it looks like it could be a long afternoon…

Now that the dollar is getting a lift from the comments from the Dutch PM saying that the Greeks should consider going to the IMF, Cable is pulling back sharply. Traders report buy orders at the 1.5000 level. We trade now at 1.5014.

Regarding the Greece/California comparisons constantly made in the market, a California budget official says that California’s deficit to GDP ratio is below 5%. Greece is close to 13%…

Well that’s the aforemntioned stops through 1.5030 and 1.5040 out of the way and we’ve been as high as 1.5062 so far, presently at 1.5053. 

Stops were also tripped through .9090 in EUR/GBP and we’ve been down to .9062 so far, presently at .9068.

Guess there were some early clues to this sterling strength.  Firstly the US custodial buying cable. As I said when they turn up they can have substantial interest. In a currency pairing as illiquid as cable they can have big impact.  Secondly reports of two UK clearers selling EUR/GBP on consecutive days around same level should have been noted. I certainly noted it all  Oh well, nearly home time.

• 1
• 2
• 3
• 4
• 5
• ...
• 163
• >