Covering of short dollar positions ahead of FOMC, pick up in general risk aversion, weak RICS housing data, and proximity of tomorrows’ BOE quarterly inflation report/June jobs data have all served to put cable under some fairly intense selling pressure today.
Cable down at 1.5735 from North American close Tuesday up around 1.5900. The sell-off comes despite reports of Asian and Middle Eastern sovereign buying, plus Russia, on the way down.
Talk of buy orders down at 1.5700/10 so far lending some support. Been trying to find out where next cluster of stops postioned without too much luck. I’d hazard a guess maybe through 1.5690.