Cable has been the worst performer of the majors since the the dollar slide following the poor US employment data. After a spike to 1.6110 following the news, the pound has turned sharply lower and fell to 1.5955 near the 16:00 GMT fixing, below its pre-payrolls report. Traders report a UK clearing bank sold GBP 500 mln, helping push prices to their lows.
Cable got very little boost from the report this morning in the Independent that the BOE will suspend quantitative ease after the February MPC meeting. It remains weighted down on fears the rapidly ballooning UK budget deficit will spawn a funding crisis in the UK.
Support is eyed in the zone between 1.5890 and 1.5920 near-term.
