With the market just about as short cable as they are the dollar, today’s GBP demand, temporary as it may be, is squeezing shorts rather uncomfortably. Cable trades at 1.5850 after overcoming a series of hourly highs in the 1.5835/45 area. We’ve been as high as 1.5857 so far.
EUR/GBP trades close to session lows, now at 0.9350, after heavy selling for much of the morning. Now that the late London fixing has passed, perhaps EUR/GBP can stabilize.
