EUR-GBP traded at 0.7891 lows amid reports of M&A related selling via a French name following EDF's GBP 12.4B takeover of British Energy. The interest lifted Cable above 1.8600 from early European lows around 1.8500. Cable has been supported throughout as a result of this interest, while EUR-USD remains choppy between 1.4650 and 1.4700 following the German IFO release. The sterling market has barely reacted to BoE's Blanchflower who reiterated his call for U.K. rate cuts overnight. Flows are reportedly a battle of short term intra-day flows and one-off orders.
