Pockets of liquidity return, particularly in cable

Large orders have been moving the markets for weeks on end but today we’re seeing some pockets of liquidity returning to the market. Dealers note a large sell order executed in cable over the last half-hour or so, knocking the pair briefly to 1.4985. The order was said to have been for 500 mln pounds. This gives legitimacy to talk if M&A-related buying of cable since the pound soon bounced back.

For some perspective, a rumored 200 mln pound sell order Friday moved cable 150 pips lower…Maybe life is beginning to return to normal.

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