Cable has ticked higher in early European trade, presently at 1.4655. The pairing will be garnering support from the fact that EUR/GBP looks to be in a fairly well-defined downtrend. The cross is down at .8825 from an early .8840.
It was interesting to see one of the wires carry a piece regarding a recommendation to sell the cross. Aaron Gurwitz, head of global investment strategy at Barclays Wealth has recommended clients take short positions on the euro versus the pound, feeling that the euro is about 15% overvalued. Mr Gurwitz warned “I think the markets are underestimating the problems facing the euro.”
