> Difficult to predict the next move for sterling

Difficult to predict the next move for sterling

Monday, 24/05/2010 | 05:45 GMT

Spending cuts by new Chancellor likely to be seen as GBP positive
Strike by BA definitely a GBP negative (though possibly only a short term one)
Offers capping cable at 1.4500, but stop-loss buy orders rumoured tight above there
EUR/GBP is trading in a broad .8400/.8850 range and we’re right in the middle of this at the moment

Sterling is in the ‘too hard’ basket for me at the moment. I’m leaving alone and hoping for a big GBP/JPY rally to get short on for the next leg lower.