Can’t keep a good pound down seems to be the theme today as sterling rallies across the board. There seems to be little correlation with any of the related markets like equities, commodities, etc and more to do with customer flows. We’re left to wonder if the across the baord nature of the demand for Sterling today is in response to the GBP 12 bln worth of stock HSBC placed yesterday. Just a guess, but those who we’re run it by say it sounds plausible but no one has ‘fessed up to seeing the busines directly.
GBP/JPY reversed to the downside earlier in the session as risk avesion spread through the marets but for the bulk of the US session it has been in recovery mode. The cross sits now at 148.75, longly eying the 150 area where it made a probe on Monday for the first time in nearly 5 months.
USD/JPY trades at New York highs of 100.77. Resistance lies at 100.85/90 and again at 101.12 near-term.