Cable triggered stops above the 1.5000 level and trades now at 1.5030. EUR/USD is being dragged up in the wake of the Sterling surge. The fact that Cable withstood comments over the weekend from the shadow Chancellor that it could collapse owing to high government borrowing may have sparked the short-covering bid. What can’t go down, must go up is our motto.
Resistance for cable lies at 1.5085 and again at 1.5200. Options desks continue to sell weakness and buy strength, a function of the very high volatility we continue to experience.
