Cable fell sharply in thin trade to hit 1.6322 lows versus early European highs of 1.6413. The pair was capped during the Asian session ahead of 1.6450, with profit taking activity picking up as the market responded to the bomb explosions in Jarkarta, which triggered an uptick in risk aversion. Cable reportedly got caught long after decent buying over the last few sessions and this exacerbated the downturn once 1.6350 stops gave way. Yesterday’s IMF report caught some attention today after they warned that the pound could be at risk from uncertainty and urged PM Brown to set out a clear path for reducing national debt. EUR-GBP traded up to 0.8638 highs on the Cable sell-off, but offers from 0.8640-50 are expected to cap further gains.