LONDON – Cable started on a soft note in the morning session in Europe and shed its gains from 1.5975 to 1.5915 (-60 points) against the dollar prior to the release of the U.K. CPI at 9:30am GMT. The Inflation data came out weaker than expected with the Consumer Price Index rising at 2.2 percent in October against the median forecast of +2.5 percent, compared to +2.7 percent in the previous month. The core inflation slowed to 1.7 percent, the least since September 2009. Cable fell sharply by another 60 points to 1.5855 from 1.5915. The softer data reaffirms speculation of the Bank of England maintaining its ultra-loose monetary policy and 375 billion pound stimulus measures until at least unemployment falls to 7 percent.
Support levels: 1.5862 -14 DMA, 1.5844, 1.5776, 1.5686
Resistance levels: 1.5980, 1.5992, 1.6010, 1.6065