The old adage to buy a currency when that.....>

CABLE: The old adage to buy a currency when that centre is on holiday seemed to

play out again on Friday (like it did the previous Friday with the EUR) as cable

managed to push up to $1.2467. However, this enthusiasm for sterling proved

short lived as a returning London market took advantage of the better levels to

sell the pound across the board, cable easing to $1.2322 ahead of NY, whilst

EUR/GBP, having cleared back above its key 10-dma (current Gbp0.8741) edged to

Gbp0.8780. Early NY applied further pressure to take cable to an extended low of

$1.2383, as EUR/GBP popped to Gbp0.8806. A retreating EUR/GBP allowed cable to

recover to $1.2363, aided in part by an easing in UST yields, but comments from

Atlanta Fed Bostic, that he considers

negative rates a weaker tool for managing the economy, reversed this outlook and

USD recovered. However, the EUR felt the main pressure which allowed cable to

settle around $1.2330. 

- Support $1.2283, $1.2266. Resistance $1.2363, $1.2390/1.2400 ahead of $1.2438.