Free Trial

Strong recovery in CBI Business optimism,.....>

CABLE
MNI (London)
CABLE: Strong recovery in CBI Business optimism, released Wednesday, provided
sterling with another upside pick as it extended its recent recovery. The pound
had floundered in recent sessions following dovish comments from BOE MPC
members, disappointing data and comments from Chancellor Javid concerning the
UK's future relationship with EU rules. All of these points had market adjusting
outlook for a possible rate cut at the Jan30 BOE meeting. This has been tempered
by the stronger than forecast UK jobs data and CBI with attention set on
Friday's post election flash PMI's. As mentioned in an earlier bullet, the BoE
may be paying extra attention to its own internal models & surveys, with a
degree of added prudence owing to a desire to not be wrong-footed, given
previous criticism. Cable extended its recovery from Monday's $1.2962 low to
$1.3153 Wednesday, corrective pullback finding support at $1.3120. Rate touched
$1.3151 in early Asia, on Australian jobs react before again testing $1.3120
into Europe. 
- Support $1.3120, $1.3100, $1.3085/80. Resistance $1.3150/55, $1.3170, $1.3112.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.