I’m getting a severe case of deja vu. I’m sure I wrote the exact same headline yesterday. Cable having hit a session high 1.4947 is presently down at 1.4820. Risk sentiment has taken a pretty beefy knock from a combination of german/euro zone unemployment data releases, and news of a bomb alert at a French nuclear power station.
Technical supports now lie at 1.4800/05, 1.4780/85 and 1.4745/50.
Now to see if the pattern of yesterday continues and we get a strong rally this afternoon. That would be spooky.
Sources report very thin trading conditions in cable, which won’t be helping, the proximity of a number of holidays taking their toll. Europe is out tomorrow, UK out Monday and we’ve Golden Week in Japan.