Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

CABLE: Cable advanced trough yesterday's London & NY sessions, after holding
steady in the Asia-Pac hours, but erased most of its gains in the wake of the
post-FOMC press conference with Fed Chair Powell.
- The upside move was accelerated by the fact that PM May refused to rule out
the UK entering some kind of customs union with the EU post-Brexit. However, the
slid back below $1.3100, as Powell reiterated the Fed's neutral stance, played
down slowing inflation, and said that downside risks moderated, even as the FOMC
delivered a "technical" 5bp cut to its IOER.
- GBP/USD trades flattish at $1.3053. Bulls look to $1.3100, which represents
the upper 1.0% 10-DMA envelope. Bears eye the 21-DMA at $1.3016.
- Focus turns to the monetary policy decision from the BoE, as well as the
accompanying press conference with BoE Gov Carney & the Bank's inflation report,
due later today. UK construction & services PMI figures come out today &
tomorrow respectively. Today's UK local elections will be watched as an
indicator of voter support for PM May's handling of Brexit, with the Tory party
expected to suffer electoral damages.