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16:08 GBP/USD: Broad Based Negative USD Sentiment Dominates Trade New York, February 26. The market has more or less been left consolidating the overnight gains in the first half of the US session with initial offers seen capping early on by 1.9750-60 following the release of the higher than expected US PPI data. Additional selling pressure has emerged into the London fix aided somewhat by the miserable consumer confidence data coming in at the lowest levels since 2003. The sharp gains seen overnight follow a broad based USD sell-off with the market seen increasing their risk appetite on the back of yesterday"s upbeat Ambac news.
Recent comments from BoE"s Rachel Lomax also somewhat explain the more bid tone in Cable of late with the governor conveying her fears over the upside risks to inflation and the likelihood that this will impede the central bank"s ability to spur growth. Lomax went on to explain that the committee needs to see the risk to higher inflation subside before cutting rates more comfortably. Cable currently trades 1.9725 with sell interest reported by 1.9750-70. Fresh bids are touted down by 1.9650.