Pound down more than 100 pips
Cable hit stops in the latest round of selling as it narrowly took out the election-night low of 1.2626. The selling in the pair today came after Mark Carney dismissed inflation pressures and said it wasn't the time to hike. Last week the pound jumped after two surprise MPC votes to hike.
The pound also fell below the 100-day moving average, which is a level Greg highlighted earlier.
Since then, the market has had a rethink and determined the minority was unlikely to win out. Today's comments from Carney confirm it.
The drop puts the April 18 low back into focus. That was the day that Theresa May called the election. That news put a squeeze on cable shorts on the belief that she would win a convincing majority. That wasn't the case and I expect those gains to continue to be erased, especially if the US dollar can remain buoyant.
