Cable is holding up pretty well, presently at 1.5285 compared to a European opening around 1.5160.
Recent good news regarding the UK housing market is certainly a plus and the feeling is growing that the UK economy maybe already over the worst. I’m not totally convinced, but I think in this instance it may pay to go with the flow.
Bloomberg this morning put together a pretty bullish piece regarding the UK property market and sterling, and it will no doubt have helped underpin sentiment.
There was good demand for the GBP/JPY cross in the wake of the Japanese official comment that they are watching forex closely, while EUR/GBP always looks heavy to me.
General risk sentiment is also in good shape, which will be underpinning sterling.
Technical resistances now come at 1.5325/30, 1.5350/55 and 1.5370/75. Got to think there are decent buy stops around 1.5355 and 1.5375. Think we’ll find out fairly soon this week.
