Macro Morning: Oil slide

By Chris Becker

Mixed is the best one can spin last night’s actions on markets as a lack of follow through from the four day rebound rally in risk could mostly be explained by a neutral CPI reading in the US, coming in as expected but in the “danger zone” well below 2%. Across the Atlantic, the BoE kept interest rates and their QE plans steady with another central bank yet again noting no inflationary pressures building.

Cable (GBPUSD) as a result broke down almost hitting the 160 handle – I”m watching the 16010 level very closely on the four hourlies and dailies as a sign of capitulation and re-entry/building of shorts in sterling: