Cable is nearing 1.2800 as it takes advantage of some moderate US dollar selling early in New York trading.
The trendline from the July peak is in danger of giving way but I would be careful to declare the downtrend dead until 1.2819 breaks. That was the high last week in what was a volatile day.
What worries me about today's rally is that the US dollar is weak despite long-dated yields rising. US 10s are up 3.2 bps to 4.29%, which is a new high for 2023. Normally, higher yields help the dollar but fixed income is also underpinning the pound. Gilt yields are up 5.2 bps to 4.70% and cable has been able to withstand higher Treasury yields for four days running.
In terms of the rest of today's session, the economic calendar is quiet so it will be down to the ebb and flow to drive the foreign exchange market.
