Sterling caught one of its severe colds this session and lost further significant ground to both the EUR and Dollar. The reasons for the Sterling's demise are not up for debate but they are quiet old and there appears to be an overall air of nervousness within the forex market and this more than anything else has spooked the Pound.
Cross action is another factor at play and a big one at that. The collapse of GBP/JPY, which has seen price fall from 238.20 a week ago to 227.15 this session. The Yen is up across the board and looks set to go higher still. The Yen cross has fallen under key support at 228.05, the spike low from January 8. Little to hold the cross up until 225.75, lows from Dec 6 06.
GBP/USD has traded down to 1.9430 having opened around 1.9575 in London. EUR/GBP has reversed course from Thursday's 0.6735 low to reach 0.6777, taking out the key 0.6755 resistance point with apparent ease. US Michigan sentiment up next at 15:00 GMT and the Sterling market will look to next week's BoE-MPC rate meeting.
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