GBP: Plenty of two-way flows to end the month
- EUR/GBP rose 40 pips yesterday on the back of M&A flow chatter;
- Asian Sovereign Funds reportedly bought GBP/SGD in size;
- Same types also noted buying GBP/USD dips at regular 15 pip intervals;
- End-of-month flows are expected to weigh on cable with USD-buying expected to dominate coming sessions.
Looks like the GBP flows were pretty much netted out and it’s little surprise then that cable is largely unchanged from yesterday, down by around 30 pips.
The short-term ‘feel’ for cable is bearish but I’m sticking with my medium-term bullish view.