GBP/USD - 1.6081.. As usual, cable never fails to excite n put on a spectacular showmanship in the forex market y'day to demonstrate what 'short

-covering rally' means. European traders were initially keen to test the pound's downside n sterling fell to 1.5832 (0.9055 vs eur). However,

report of a huge cross-buying of sterling lifted price sharply higher, prompting intra-day shorts to scramble to cover their positions. The rally to 1.6095 has given price a biddish tone in Asia. Order book is thin due to New Year's Eve, some stops are rumoured to be near 1.6100 n bids probably near 1.6020-00 area.