Stops-driven sell-off scores new low last week but rate bounces smartly suggesting at least a small interest in bottoming. Failure to hold above the 1.4700 handle likely to draw in late shorts. Traders report large bids on the drop but volumes died later, lower oil pricing pressures prices all day. Traders report model/macro accounts continue selling the rate.

Rate struggling to hold gains but is off the weekly low from last week; today's open shows net bid follow-through but some weakness. Look for more upside this week. Possibly shorts covering ahead of the news due Tuesday. Rate bouncing off two-year lows and is an excellent buy in my view. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news.

Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Get ready for the rally.

Heading into the close for Monday the USD is slightly mixed as pressure from equities rubs a little shine off the bull's horns; most of the major pairs are slightly lower to about unchanged on the day. Although sentiment remains firm for the Greenback there are signs that the current rally is about to falter; the biggest indicator is low volume in my view.

Most pairs had a flurry of activity early ahead of the London fix but have since slowed down measurably from early order flows. Cable is holding firm around the 1.8650 area after making a run for lows but was unable to test the overnight Asia lows still in place at 1.8624; a late rally was turned back from the 1.8680 area and the rate remains steady in the middle of the range.