Looks like traders are reluctant to hold the mighty pound ahead of tomorrow’s MPC announcement. With the Fed running toward the emergency room with a fresh injection of quantitative ease and the BOJ already in the recovery room after its transfusion, traders fear the BOE is lining up to give the UK a monetary shot in the arm…
Cable slipped as low as 1.5833 before stabilizing on selling from a mean, nasty US investment bank and from a UK clearing bank. It trades now at 1.5865.