Once again weak shorts are getting squeezed out of the market as the open of the rest of Europe brought out the big guns hitting a short market, just with the surge in NY markets though this is a liquidity issue rather than any broad based buying of Euro and Cable. With equity indices as they are, down across the board, and Halifax HPI dropping a sharp -2.2% vis-à-vis a -0.5% consensus risk aversion remains our theme. Going forward event risk now will be the ECB and BoE interest rate decisions with consensus forecast for a 50bps cut for both at 3.25% and 4.0% respectively though talk call for a more aggressive 100bps easing in the UK following remarks from the Confederation  of British Industries.