Cable starts the year off in style. What's next

Technical Analysis

Author: Adam Button | cable

Cable near the best levels since Brexit

The pound is the top performer today and the US dollar is lagging. The pair is up nearly 1% in a quick start to 2018.

More importantly, the pair climbed through the December high and is now testing the best levels of last year. In September, the pair hit 1.3657.

Today's move is about broad USD weakness and some early optimism. What's interesting is that the pound climbed last week in one of the quietest news weeks of the year. That's typical of GBP but whenever the news picks up, it's usually (bad) Brexit news so the risks are rising.

Economic data risks are more two-sided and this week they include the Markit UK construction PMI (tomorrow), house price data (Thursday) and the services PMI with Q3 unit labor costs on Friday. There are no BOE speakers on the agenda.