Compared with yesterday’s opening, cable has lost 100 pips, the AUD, NZD and CAD have all gained 50 pips and the EUR and JPY remain unchanged. I don’t see any reason to deviate from this short-term trend; ie sell cable on rallies, buy the commodity currencies on dips and range trade the EUR and the JPY. Most of the pre-election JPY flows have now been taken care of but there will of course always be late-comers.
I expect a relatively quiet session in Asia today with no major events expected.
Good luck today.
