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Hardy on sterling: Don't be caught out!
Don't be caught out by the "event risks" this week which could hit sterling. John Hardy, Saxo Bank's Head of FX Strategy, says the pound has been on a roll of late. But CPI data and the Bank of England's inflation report could shake things up.
John says people are "quite long" sterling right now, particularly against the euro. Last week's surprise interest rate cut by the European Central Bank was a partial trigger there. But John says we're seeing a resilient and rallying dollar and traders could find themselves boxed into a corner. It'll be very interesting, he says, whether $1.59 will hold.
On the euro, John says the market's coming off its very long euro position and there's a lot more unwinding that can happen. The next major target to the downside, he says, will be $1.31.
01:32 minutes
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