Cable up 150 pips
A soft US dollar explains about one-third of the cable move today but the rest is UK-driven. There isn’t a particular catalyst though, with news flow out of the UK very limited today.
The latest is that the UK has added India to its travel ban list over covid variant concerns.
I think this is more about the market growing more optimistic on the broader European recovery from covid with the UK at the leading edge. The bullish outside reversal on Friday is adding technical momentum as well.
The move will get tougher from here with psychological resistance at 1.40 as well as the mid-March highs.