What we doing up here?

This one goes out to Millward. Sorry mate been trying to answer your question on the wrap but have hit a snag. I’ve given up after 3 tries.

Cable sits up at 1.6480 having earlier tested resistance at 1.6500. I’ve got to admit to being mildly surprised we’ve come so far, so fast, but hey that’s the jolly old forex markets for you.

Cable has been bolstered by all the Russian reserve currency rhetoric, a much stronger than expected German ZEW economic sentiment indicator read which has helped lift risk appetite a tad, and by the release of stronger than expected CPI data. Guess the stronger than expected inflation data has helped quell deflationary fears and has probably led some to believe the BOE might just go for an early-ish rate hike.

Well personally still see price pressures coming lower, and certainly don’t see any early rate hike. I have to also admit I’m surprised the market reacts quite so violently to the reserve currency rhetoric, but then that’s me.

Anyways, for what it’s worth Millward, find it hard to get bullish cable at these exhaulted levels.

For good orders sake, technical resistances now come at 1.6500, 1.6520/25, 1.6550. I’ve gotta suspect there are some buy stops somewhere not far north of 1.6500, but haven’t gotten confirmation of such.