Sell orders at 1.8610 kept a lid on early Europe cable gains. Those gains were aided by the tripping of stops above 1.8590 and 1.8600. Asian Central Banks were touted names-in-the-frame re: the 1.8610 selling. Further stops are now touted above 1.8615. Today's Asia high was 1.8575. The catalyst for the early Europe GBP rise was the continent"s absorption of the 00:01BST disclosure that September's RICS UK house price balance rose to a four-year high of 45.1. The strong number underpins the expectation that the BoE MPC will hike the UK base rate by 25bp to 5.0% next month (November 9). The BCC says 5.0% must be an "absolute ceiling" re: the base rate (DJ).
Lows just shy of 1.8550 were plumbed on the pullback from 1.8610. Lower support points include 1.8541 (today's Asian session base), 1.8517 (yesterday's 11-week low), and 1.8500. A 1.8500 option strike rolls off at today's 10am EST NY cut. There is also talk of a large 1.8500 exotic No Touch option in play. The size of August's US trade deficit will be disclosed at 12:30GMT. Forecast: $66.8bn, from $68.0bn in July.
No comments:
Post a Comment