Macro Man

Dear MM,

1.3342 sounds like a great sell.

Did you see the cable go thru the roof ? You were talking about a traditional resistance at 1.9X, looks like we are going to touch 2.00 pretty soon ?

Well, it looks like 2.00 will happen at some point pretty soon, possibly if the US employment data is poor on Friday. The real question is what happens once we get there- the balane of risk must favour some profit-taking at such a critical level, which could provide a temporary boost to EUR/GBP.

However, if Voldemort and UK corps keep buying sterling, the technical resistance might not prove sufficient to prevent at least a temporary foray on a 2 handle.