Darling’s reluctance to cut the UK deficit deeply is helping undermine the pound as the market frets over the UK’s debt rating. The US won’t be too far behind if its deficit is not reined in (or the economy does not resume reasonable growth) over the next year.
Cable trades at session lows at 1.5980 while EUR/USD is at 1.4380 after dipping as low as 1.4375, triggering some stops in the process.
This latest cable slide has seen the market retrace more than 61.8% of the 1.531/1.6240 rally. In a day. 1.5910 is next support, followed by 1.5830. Trade this dog at your own risk.
