Reports point to pretty savvy reading of the markets by some sovereigns with everyone thinking rates cuts and indeed a sharp proactive 150bps move from the Bank of England better pricing was available leading to a quick short squeeze and dealing rooms left to ask what was happening with some research teams now turning bull on the British currency. At this point note this is not exactly a unique situation with yesterday’s early NY trade exhibiting the same action on what should have been weak fundamentals to drive risk aversion. As such for the rest of the NY market we will be looking at economic fundamentals to once again slowly reassert themselves to the market with such a sharp easing hinting of just how bad conditions are and panicky policy makers.  For now the key for Cable and the rest is to see and hold new lows reminding markets of what textbook reaction means.