Cable is seeing slightly choppy action early, presently at 1.5900. The UK is out today and this will make the cable market even thinner than normal. As a result it won’t take much of an interest to move the pairing in either direction.
I have to admit the weekend press seemed to be full of potentially negative news for sterling, but the currency is proving pretty reslient so far.
Top economist Professor Robert Shiller was busy warning that Britain faces the prospect of two recessions in quick succession. Chancellor Darling came out and admitted UK unemployment will continue to rise throughout this year, even if the economy starts to recover. Meanwhile the FSA is considering whether to publish details of how UK banks were stress tested, which would reveal the Government’s view of the worst case scenario for the financial sector.
Anyways for today, technical supports at 1.5880/85 and 1.5850/55, resistance up at 1.5935/40.
