Since the middle of August cable has not strayed very far from its 200-day moving average. It has spent most of that time just above that average but did spend a few days below it last week before rallying on last week’s decent retail sales and GDP data. Today, the BCC was similarly upbeat on the outlook for the UK economy today but the pound has fallen victim to a return of our old friend Risk Aversion.
1.5446 is the 200-day average; more support is seen near last week’s lows in the 1.5475/90 region.
