Forex Action: Cable Corrects Back to Near Net Unchanged Levels

Cable has corrected back to near net unchanged levels around 1.2935, leaving the day’s high at 1.2978, which is the loftiest level seen in two weeks. In contrast, the pound has recouped lost ground versus euro after trading an fresh eight-year lows during the London morning session.

Action Economics said that they retain a bearish view of sterling. The relative stagnation of the U.K. economy has been in full evidence over the last week, the latest being an unexpected negative print in the August house price index from Nationwide, while European Commission head Jean-Claude Juncker Tuesday sharply criticized the U.K. government, saying that he had read “with the requisite attention” all the papers produced by the British government before stating that, “none of those is satisfactory”.

Cable has support at 1.2889-90. Monthly U.K. lending data are out Wednesday from the Bank of England, before the latest Gfk consumer confidence survey and August manufacturing PMI on Friday.

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