Cable has extended the morning’s losses, presently at 1.6180 having posted a 1.6173 session low a little earlier.
Aforementioned bids in EUR/USD at 1.3900/20 are soaking up the selling interest there, and this is presently helping to limit cable losses under 1.6200.
Event risk comes for sterling this morning in the form of the 08:30 GMT release of UK industrial production data for May, which is expected +0.2 m/m, -11.3% y/y. Sterling desperately needs a good number.
More event risk comes Thursday when some feel the Old Lady will extend QE by another £25 bln, which is a negative for sterling. That said, such an eventuality must at least be partially discounted by now and there’s always the chance ofcourse the bank will hold steady.
Cable support now lies down at 1.6140/50.
