Cable sits at 1.6740, pretty much unchanged from where Europe opened up, in what is surprisingly steady trade.
Barclays results have come and gone, and had no discenible effect on cable. First half earnings rose 10%, net income £1.89 bn from £1.72 bn year earlier. This is below median analyst forecasts of £2.2 bn.
Technical supports for cable 1.6730 and 1.6690/00, resistances up at 1.6775/80 and 1.6795/00.
One particularly big event risk for cable/sterling comes later in the week in the form of the latest Bank of England MPC meet. Rates are almost certain to be kept on hold, but it’s what the bank does regarding quantitative ease that matters. Gotta think the uncertainty surrounding the outcome here will ellicit a note of caution among GBP bulls.
