A weaker dollar is fueling the run in cable today
So far, cable (or should I say the pound) has been keeping with on the good side with chartists as it is building on the bounce off its 100-day moving average (red line) and staying in the hunt of a sixth straight day of gains – eyeing 1.3900 now.
The fact that EUR/GBP is also failing to break above 0.8700 last week and has retreated since, only contributes to some added resilience in the pound.
But the rise in cable owes much to the story of a weaker dollar over the past few days, with Treasury yields having fallen quite a bit with 10-year yields seen at 1.56% now.
Looking at the chart, the early April highs @ 1.3913-19 is the next key region to watch for buyers and a break above that will open up the path towards 1.4000 again.