Not sure if it is the crosses at work or what this afternoon, but GBP is an out-performer on the afternoon. Could be the case of “and the last shall be first”. The Dollar and JPY have enjoyed strength this afternoon while commodity currencies have been pressured by China’s tightening moves casting a pall over the reflation trade.

EUR/GBP trades at session lows of 0.8960 while cable trades within 20-pips of session highs, now at 1.6175. Large sellers were seen in the 1.6190/95 area earlier with Asian central banks among the rumored sellers.