Cable nears 1.20 as the US dollar sizzles

Recession worries are mounting and they're centered on Europe.

Today's high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term print means the ECB might tighten in September but it will be into an economy that's rapidly slowing. In addition, German forward power prices hit a record high (excluding two days in Dec) and European natural gas prices are at €150 per MWh for the first time since early March. Russia has scheduled pipeline maintenance on natural gas flows and they're fears they could cut off Europe altogether.

We're also dealing with some major flow-driven trade as the calendar turns.

Add it all up and the euro and pound are suffering. Cable is down 165 pips to 1.2012 and is quickly threatening the June low of 1.1934. Watch for stops on a break of the figure.