No respite for cable at start of the new week. Cable has already given up the best part of half a cent in hectic trade. We’re presently down at 1.6190 from early 1.6230.
Weekend press report in The Telegraph was busy touting EUR/GBP at parity, so it’s not overly surprising to see sterling under pressure. GBP/EUR is up at .9060 from early .9045, technical resistance next at .9070.
Some of the fundamentals continuing to weigh on sterling
- Public finances in dire straits
- Further QE expected soon
- Move to cut deposit rate paid on bank reserves held at Bank of England expected soon
- Increasing talk sterling being used as carry trade currency
- Ongoing banking sector woes
I’m sure there are more, but it’s still early and brain still getting into gear. But that’s enough to be getting on with.
Cable supports now 1.6180 and 1.6150.
