EUR/USD’s dip tested support at 1.4338, the former range top and has bounced back into the mid-1.4360s. Look for stops to continue to gather in the 1.4325/35 region as frustrated longs set trailing stops.
Cable dipped briefly below the 1.6800 level, weighed down by another GBP 50 bln in gilt-buying over the next three months by the BOE. The central bank will not be at all upset with the lower pound as they view exports as an essential component of the UK’s recovery. Bids are seen in the 1.6760/70 region but stops lie below that level.
