GBP/USD post cpi sell off?

Discussion in 'Forex' started by squadron leader, Dec 15, 2006.

  1. 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?
  2. 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.
  3. 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...
  4. 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.