Cable is a moonshot. Why? I thought it was going down, so it wanted to spit in my face. That’s why.
Technically, we are filling a vacuum created on the fast slump from 1.6620 level after lousy GDP data from the UK a week ago. Demand from UK corporates, repatriating for dividends is the fundamental flow, but this seems to be more a pain trade than a flow trade. 1.6620 is next resistance of note, followed by recent trend highs at 1.6693.
UPDATE: We now hear the Saudis have bought a yard of cable, for what it’s worth…
