Cable has opened in Europe a touch weaker, down at 1.6375 compared to a North American close Friday up around 1.6395.
Traders will have noted the British Chamber of Commerce’s call for the Old Lady to cut rates to zero at this weeks meeting. Will the Bank pay any heed? Personally I’d guess not, expecting rates to be held steady at 0.5%. Also I think QE will be left as is this time round.
Talk of good demand for EUR/GBP down around .8700 will be weighing a little on cable, the cross up at .8750 presently from a North American close Friday down around .8720.
Technical supports for cable, 1.6350/60 and 1.6310/15, resistances 1.6395/00 and 1.6415/20.
