Cable remains under pressure this morning amid chatter that the BIS has been a seller of the pound this morning for its central bank customers.
Concerns that Lloyds Bank will not be able to exit the government’s toxic asset scheme as planned are weighing on the pound as is sterling’s growing use as a funding currency in carry trades. Wasn’t that long ago when sterling was the high-yielder!
Cable looks like it worked through a sell order in the 1.6320s and is now bouncing back, trading around 1.6350. 1.6375 is intraday resistance.
