GBP/USD - 1.5938.. What happened to the British pound this morning ? Well, it was all down to
BOE's Governor Mervyn King who told a regional British newspaper y'day a weak pound was helping U.K. exporters and the economy cope with a sharp downturn. Cable swiftly tumbled after just about every sterling trader frantically jumped in to sell the pound after his comment. Although price stabilised after y'day's fall to 1.6023 in NY session, reports of active selling by U.S. names & U.K. clearers sent price sharply lower to a 4-month low at 1.5917 just b4 Tokyo opening. Although decline is over-extended, offers are still up there fm 1.5980 to 1.6020 n expect some light bids (for short-covering) near 1.5900/10.