Cable continues the retracement
The US dollar is soft ahead of the Fed and gold is higher. That’s a signal the market is looking for something dovish from the FOMC even if the equity market is feeling the jitters.
Cable has been somewhat of a laggard in the dollar trade, owing to the regular Brexit tomfoolery. To start the week, the pound struggled to get above 1.2750 but has broken through today and continued up to 1.2800 and sits just below now.
The pound is a mid-performer and it’s all about the weak dollar today. Expect to chop around here while we wait for Powell & Co at 2 pm ET.