This pair confused me for the last week or so in that I was quite bearish after the sharp reversal off .9400 but on the other hand I had information that some big, well-informed, players were buying significant amounts between .9000/50. Once again size wins the day and with sentiment once again doing a back-flip, I think the odds now favour a move towards parity and perhaps above if the bad news continues to flow from the UK economy.

Cable is relatively stable now in the early morning interbank market at 1.6290 and the retail world should be up and running over the next hour or so.