Aug. 7 Wednesday
LONDON. Despite the initial 100-point drop of cable from 1.5300 to 1.5200 following the Bank of England's Inflation Report and comments that the central bank will refrain from raising its interest rates or reduce bond purchases until the jobless rate falls below 7 percent, Cable rallied sharply from 1.5200 to 1.5480 (+280 points) as Euro-Sterling fell significantly from 0.8730 to 0.8590 (-140 points) on large corporate orders selling the euro and buying the pound, hitting sell stops at 0.8650. There are large option expiry orders at 0.8600 at the NY cut on a word of caution in this volatile market.
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