GBP/USD post cpi sell off?

S

squadron leader

cable up after weaker cpi.

why the subsequent sell-off?

stronger industrial production? stock market still climbing?


i would have thought cpi would take the lead and we'd be higher...

any thoughts?
 
I think when TICS data came out, people had expected a shortfall in funding. That didn't happen, and CPI was in line with expectations - not short. So people started taking profits on the CPI move. Profit taking shortly turned into a landslide - Russians were selling again, too.

A stomp on Copper to new lows also kicked AUD in the pants, plus a massive order in USD/JPY - all together spelled directional bias.
 
cheers ivanovich.

fixed income trader myself, but have been recently having a VERY SMALL dabble in FX on the side.

quite enjoying it actually. got fingers burnt trying to fade eur/jpy around 150 a few months ago, now trading a bit more sensibly.

more success in cable though recently.

thoughts into year end/jan for cable.

i'm of the opinion we'll see some further $ weakness...
 
I think next few weeks we'll see a correction with cable, but longer term - in my opinion only - is up. BoE yammering on about another hike, or two. Sterling strength is in the future. From a technical perspective, people want that 2.00 mark. After that, who knows. Could be like it was last time it hit 2.00 and then a month later smashed through 1.65 or so.
 
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