All aboard the GBP/USD Roller-Coaster

Ladies & Gentlemen

In the last 24 hours we have witnessed one of the most wildest days for Cable, with a near 200 pip swing - behaving more like a "spoiled kid" trading FX for the first time.  We moved to 1.5390 when the AB InBEV / SAB Miller deal (now the world's biggest brewery) was announced before a sharp move to 1.5210.

UK employment data this morning has kept calmer the beast that could form this month in Sterling as it is held below 1.53... For now at least! The UK ILO Jobless rate was posted at 5.4%, actually the lowest since mid-2008... giving a further insight into an all important component for the UK employment sector, as people get their butts into work before Christmas.

So what are the important intra-day levels to watch? Well the initial hurdle of 1.53 is clear and above that to really prove bullish power would be 1.5345, where the 200-Day SMA marks. However, a breakdown in Cable this week could fast see an exposure of 1.5107 - the low from October 1st and then a bearish eye towards the 1.50 levels once more (lows of May & also key psychological support).

What is the Future for Cable? - Again the long-term dynamics of £/$ are likely to be determined by the continued debate around rate hikes and as we all know the global economy is slowing slightly and this slow-down could backlash on the UK as well as the USA. The near-term bias could still be on the down-side.

Wishing you the best of Luck

Anish 8FX