Cable goes from higher to lower and now back higher again
Cable's bounce after testing the 12 March support and bids around the 1.3000 handle overnight met a stumbling block earlier as the dollar gained on risk aversion in markets. That of course came after Germany's dismal manufacturing PMI print which sent equities and the euro tumbling on the day.
That saw cable fall from 1.3140 to 1.3081 before price recovers now to move back towards 1.3150 again. There isn't any new headlines that is driving the move but position squaring ahead of the weekend may be a consideration for the price action that we're seeing.
With Brexit risks and pound volatility heightened, I would expect further choppiness to prevail ahead of today's close. In the mean time, near-term bias continues to side with sellers but a move below 1.3000 is still proving to be a step too far as markets aren't really considering a no-deal Brexit outcome as being likely for now.
