A bout of profit-taking on long positions has been blamed for cable's drop to intra-day lows circa 1.9750, from early Europe 10-week highs just shy of 1.9825. The latter highs were notched after the sating of sell orders at 1.9800, as the pound continued to benefit from the risk that another 25bp UK base rate hike to 5.5% might be delivered this Thursday.
Sub-1.9750 demand is noted at 1.9740 and 1.9720/25. The latter orders are located pre-1.9718, last Friday's high. Some stops are tipped below 1.9700. Exotic option barriers are located at 1.9850, 1.9900, 1.9975, 1.9995, 2.0000, 2.0025, 2.0050, 2.0075, 2.0100 and 2.0200+. Today's key US event risk is the 14:00GMT disclosure of February's pending home sales index.
Forecast: 108.2, from 108.7. This week's key US event risk is the Good Friday publication of March's US employment report. NFP Forecast: 120/130k. Unemployment rate forecast: 4.6%. March's UK service sector PMI will be unveiled at 08:30GMT tomorrow. A rise to 57.5, from 57.4 in February, is forecast.
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