Cable is starting the new week on the defensive, presently down at 1.5810.

The Centre of Economics and Business Research, in its latest UK prospects, is predicting the Bank rate will remain at 0.5% until 2011. They also expect the Old Lady to do further quantitative easing, feeling that the programme of asset sales will not start to be rolled back until 2014 at the earliest. Not a recipe for a strong pound.

Technical support next at 1.5800/05 and then 1.5760/65. Probably some stops just below former level.