Traders report a heavy selling in cable by a dark and shadowy force located in lower Manhattan. The pound has slumped back to the 1.6320s after a pop to 1.6370/75.
Extraordinary volume was seen ahead of a 0.9000 barrier in EUR/GBP, traders report, with as much as GBP 500 mln sold to defend the barrier, but fruitlessly. The cross continues grind higher, now at 0.9014.
Buying from a South Asian central bank was seen around the 1.6300 level earlier, helping spark the earlier rebound, traders report.