• UK parallels with Japan worrying
  • More active investors, greater openness in UK’s favor
  • UK, US, EU face poor external demand prospects

Despite gloomy comments from MPC member Posen and IMF economist Blanchard, EUR/USD and Cable are trading with a firm tone.

Markets got themselves oversold this morning and are on the rebound during an uneventful afternoon. Cable trades at 1.4460, EUR/USD at 1.2410.