It appears that Friday’s theme was mere profit-taking as good news out of Canada and US was excuse enough to move some money off the table. Sterling is back on trend today with comm dolls leading the way. $GBPAUD, $GBPNZD and $GBPCAD have all broken out above their Friday highs in opening market action. While fundamentals point toward a deteriorating UK economic picture, risk flows dominate with GBP enjoys European safe haven status.
- David Blanchflower: The recession deniers have gone strangely quiet this month (The Independent)
- Interest rates expected to remain ‘on hold through 2013’ (The Telegraph)
- Safe-Haven Pound Need Not Kill Off Exports (EconoMonitor)
- Scotiabank – GBP: Safe haven and intra‐European diversification flows likely to provide support (FX Street)
- China’s RRR Cut And Greek Uncertainty Pull In Opposing Directions (Forex Live)
- Today’s Orderboard (Forex Live)