Cable sits at 1.4550, having slipped back from the earlier session high of 1.4597. Sterling is being underpinned presently by the better sentiment as risk appetite returns and flows are attracted to perceived high yielders.
Sterling got a lift to the highs from the release of Nationwide data showing house prices rose 0.9% m/m in March versus the 1.9% drop in February, the first rise since October 07. The Nationwide were quick though to say it is too soon to call a housing market recovery. Personally I’ll go further than that. If this is the bottom of the UK housing slump I’ll eat my hat. OK I haven’t got a hat, but you know what I mean.
For today, technical support lies at 1.4540 and then 1.4515, resistances up at 1.4600, 1.4620/25 and 1.4650.
