Cable erased a 1.9150 exotic option barrier en route to a 19-month high of 1.9180 during the London morning, as the USD continued to suffer on yesterday's PBOC Zhou comment that China has a "clear plan" to diversify its $1 trillion FX reserves (Reuters). GBP is the third most popular FX reserve currency, after the USD and EUR, according to recent BIS data.
Further exotic option barriers reportedly reside at 1.9200 and 1.9300. A 1.9200 option strike rolls off at today's 10am EST NY cut (15:00GMT). 1.9146 (Aug 8 high) is now a pullback support point. Lower props include 1.9137 (Nov 1 peak), 1.9125 (last Friday's top), 1.9110 (today's Asian session high), 1.9085 (yesterday's rally high from 1.8976), and 1.9052 (today's low).
Next week's key UK event risk is Wednesday's publication of the quarterly BoE inflation report. There is a perception that yesterday's BoE MPC statement to accompany the as-expected 25bp UK base rate rise was less hawkish than the statement which accompanied August's 25bp UK hike. Minutes from this week's MPC meeting will be released on November 22.
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