Cable at the highs of the day
Cable is in the midst of a fantastic turnaround. After falling to 1.2441 it's turned around and is trading at 1.2644, up 32 pips on the day.
The chart looks like a washout but a rejection of the December lows. It will take a further rally to 1.2800 to finish the job and that's still a tall order.
What isn't going to help is the looming Brexit vote, which is due on January 15.
Buzzfeed reports that there is little chance and few signs of enough votes switching
"After numerous telephone calls between the prime minister and EU leaders over the last two weeks, and meetings with the DUP, May's close allies privately concede they are on course to lose the vote set for January 15," they report.
With that, there's talk about another delay or a second vote after the first one fails. One way she could secure a deal is by promising to quit, which is something that's on the table.
Given the uncertainty, it's tough to imagine the pound making a big rally but at the moment it's the US dollar side of the equation that's wilting and if Powell is dovish on Friday that could continue in the near term.
