Tripped stops under 1.9700 helped depress cable to a six-week low of 1.9680 late in the London morning, amid across-the-board USD demand. Further stops were previously tipped sub-1.9680. Touted bear targets below include 1.9660, 1.9590 and 1.9510. 1.9700 (Friday's floor) is now a resistance level.
Upper obstacles include 1.9736 (today's Asian session base), 1.9756 (today's Asian session peak) and 1.9779 (Friday's high). 1.9750, 1.9770 and 1.9775 option strikes roll off at today's NY cut (14:00GMT). In a Sunday Times article headlined "Migrants create UK job market slack", David Smith writes that the ILO measure of UK unemployment could be approaching 7% of the workforce by the time of the next UK general election, based on recent trends.
The next UK general election is expected in May 2009. UK April annualized money supply growth came in at a way above-forecast 13.3%. A 12.4% rise was expected. Minutes from the May 9/10 BoE MPC meeting will be published on Wednesday (May 23).
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