Sterling's recent recovery was driven in......>

CABLE: Sterling's recent recovery was driven in the main part by positive risk

outlook, which in turn was led by equity markets. Cable managed to extend its

recent corrective rally to $1.2813 in the volatile period during the FOMC policy

announcement and Fed Powell's speech/Q&A Wednesday before it settled around

$1.2740 into the close. Risk off emerged in Asia, based on Fed Powell's COVID

recovery outlook, as well fears that a fresh upswing in COVID-19 infections were

being reported in certain areas of the US. The pressure on equities weighed

heavily on sterling, cable pressed to an early Europe low of $1.2651, recovered

to $1.2720 before turning lower again into NY. Pressure on US equities continued

to weigh as rate was pressed toward $1.2600(low at writing $1.2604) into the

Europe close. Stock market analysts had reported that a good proportion of the

money going into equities were seen as fast money (more gambling than long term

investment), describing the attraction as 'TINA', There Is No Alternative for

investment returns. This move down therefore in equity markets has been fuelled

by this fast money exiting. Support seen into $1.2600, a break to expose

$1.2575(76.4% $1.2501-1.2813).