It’s all about the reversal of safe-haven flows.
At the height of the European crisis, people were frantically looking offshore to park money. Switzerland and the UK were the preferred destinations and in the past month we have seen that trade unwind.
At the same time, the UK economy is struggling.
This usually slow-moving pair has gone vertical. Some consolidation could come at any time but a straight move to 0.9100 is equally likely.
