Position adjustment, ahead of today's BOE.....>

CABLE: Position adjustment, ahead of today's BOE MPC monetary policy

announcement, and a easing of the recent positive risk outlook acted to weigh on

cable through the European morning, taking rate down to $1.2476 ahead of the

announcement. Rates unchanged and an increase in QE by Gbp100bln had been widely

expected, though some had seen room for a larger increase and therefore was seen

hawkish. Initial reaction took rate to $1.2549 but attention quickly turned to

the press conference with chance that negative rates may be mentioned as well as

signalling further QE. This outlook, along with equity market slippage in early

NY, acted to take rate through $1.2450, as well as breaking a key uptrend from

Mar lows at $1.2448, with recovery efforts remaining very shallow. Continued

slippage in equities overcame any positive reaction from the BOE press

conference, ruling out YCC and negative rates, and took cable through its 50-dma

and 55-dma at $1.2427 and $1.2419 respectively before finding support into

$1.2400 (low $1.2402). Recovery effort has remained below the broken trend line

leaving a bearish feel in late trade.