Dip after ADP employment quickly erased
Theresa May is slated to published her much-anticipated white paper on Brexit negotiations. I don't expect anything in the way of details but in the past, the market has shown that it likes a plan, or at least a sign of strategy.
Cable dipped down to 1.2610 from 2.2640 in the aftermath of the strong ADP employment report. But the dip has now been completely erased and cable is trading a 1.2660 -- a session high.
Moves like that underscore the sudden demand for the pound. I suspect a good chunk of that is short covering but the gains are a sign of more to come.
The January 25 high of 1.2673 is the next short-term hurdle for the pair.
