GBP/USD: Lagging the Gainers, post-US Durables

The pound has only notched up only modest gains against the USD on the back of January's 7.8% plunge in US durable goods orders unlike the JPY, CHF, and EUR. Unwinding of long GBP carry trades versus the JPY and CHF helps explain the underperformance. Asian Central Bank offers are touted at 1.9670/75, with some stops tipped above 1.9680. Sterling support points include 1.9626 (today's Asian session base), 1.9610, and 1.9590.