Little to report yesterday as the market was in summer mode, with cable trading in a 1.30/31 range.
This morning’s unemployment number of 3.9% beat expectations, although given the extent and depth of the furlough scheme it is unlikely this is a true reflection of the jobs market right now, with expectations it will be closer to 7.5% once the furlough scheme is phased out.
Ultimately though cable remains at the mercy of the dollar, which has been a little firmer recently driven by the grind lower in the euro.
EURGBP as a result has pushed below 0.90 and whilst we remain slightly bearish the pound, Euro positioning is a concern, so we stay on the side-lines for now looking to enter into cable at better levels.