Cable is a little firmer in early European trade, presently at 1.6345. General risk sentiment is in pretty good shape, while the USD is struggling as the realisation grows that we’re not likely to see an early US rate hike.
Recent improved UK housing data and PM Brown’s political survival are other factors underpinning cable. Another factor at play is ongoing talk of positive M&A flows eminating from the proposed Barclays/Blackrock deal.
Technical resistances now come at 1.6355/60 (which is being tested as I write) and then 1.6395/00.
