Cable has fallen as low as 1.4500 as the dollar flexes its muscles across the board, the pound suffers from continued domestic woes and the JPY contributes, slipping below 130.00 against the pound intraday.
It is hard to believe just four trading sessions ago we were trading at 1.5370. Sustained dollar strength and renewed risk aversion could see the pound fall back below the 1.4355 level posted in razor-thin conditions on New Year’s Eve. With US retail sales data due tomorrow, we could be at the stage where bad news for the US is good news for the dollar again (like it ws for much of the autumn months). Poor data could put the lows at risk.
