The market remains confined to an intense downtrend and is in the process of consolidating just off the recent +30-year low from July. Any rallies are classified as corrective ahead of what should be the next major break below 1.2800 and towards 1.2500. Only back above 1.3500 will take the immediate pressure off the downside and force a shift in the structure.
The combination of a healthy run of UK data and not so impressive US data have been seen as the primary drivers behind the Cable upside, though with the market now trading back towards 1.3500, there has been the emergence of renewed offers from macro players still betting on a lower Pound on the Brexit overhang. But for today, the focus will be on UK industrial and manufacturing production, a round of BOE speak from Carney, Cunliffe Forbes and McCafferty and the Fed Beige Book.
The combination of a healthy run of UK data and not so impressive US data have been seen as the primary drivers behind the Cable upside, though with the market now trading back towards 1.3500, there has been the emergence of renewed offers from macro players still betting on a lower Pound on the Brexit overhang. But for today, the focus will be on UK industrial and manufacturing production, a round of BOE speak from Carney, Cunliffe Forbes and McCafferty and the Fed Beige Book.
