Due to the social unrest in the streets of U.K., Cable took a hit in yesterday’s trading session. Cable, after it had opened the day at 1.6341, traded as low as 1.6176 before recuperating its losses slightly to end the U.S. trading session at 1.6292. All in all, the pair lost 49 pips.
It also didn’t help that data from the U.K. disappointed. The manufacturing production report came in at -0.4% instead of the 0.3% gain consensus. Meanwhile, the trade balance showed a 8.9 billion GBP deficit, which was slightly higher than the 8.2 billion GBP deficit initially expected.
Today, the only important economic event on U.K.’s economic calendar is Bank of England Governor Mervyn King’s inflation reports. At 9:30 pm GMT, King is scheduled to hold a press conference, along with other financial officials, about U.K.’s inflation and economic situation.
With growth slowing and the overall uncertainty in the global economy, the market is expecting a bearish tone from the BOE. If the market is correct, it could lead to a Cable sell-off. Be careful trading today!