Cable rebounded as high as 1.4680 as the BOE took a more “moderate” course than some had anticipated, having sold off to 1.4465 earlier today on fears that another 150 bp cut was in the offing. View this bounce as a relief trade. Cable trades now at 1.4630.

1.4560, the old trend low set back in early November, will be closely eyed on a closing level. A close below will keep the pound under pressure headed forward. The BOE seems to be resigned to a softer pound, hoping it helps offset some of the domestic weakness being felt at present. The trouble is that export markets are nearly as weak the home market, so recovery will be slow weak pound or not.