Dealers note solid selling from leveraged accounts in cable as European trading draws to a close, but the sales are being absorbed with relative ease. Some suggest reserve diversification may be at work with the pound trading at its lowest levels in almost a month despite a BOE rate hike today and recent signs that inflation is not yet abating.
Poor UK trade figures and an overwhelming long market position are two factors weighing on the pound today. The base of a channel comes in at 1.9800 today and was nearly tested earlier in the session. The top of that channel is now at 2.0020, not too far from yesterday's highs. 1.9880 is solid resistance on bounces intraday. Cable trades now at 1.9830.
No comments:
Post a Comment