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Sterling Dips to 1.6020 on BOE's Misinterpreted News

Posted by Chris Advincula on Oct 8, 2013 7:05:00 AM

Oct. 8 11:15 am GMT

LONDON - Cable fell sharply by 55 points from 1.6075 to 1.6020 at 9:40am GMT after the Bank of England announced that they will hold a Long-Term Variable Rate Repo Operation (LTRO) tomorrow. The spike downward to 1.6020 proved to be short-lived however, after traders soon realized that the news was nothing new and that the BOE's Repo operation was merely routine. Cable rose back quickly to 1.6090 on short covering and quick buying interest.

 

Chris Advincula

WorldWideMarkets

 

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Chart: WorldWideMarkets Alpha Trader

 

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