FX round-up: Cable gains in volatile trading

Cable was under pressure throughout the session as traders adopted a cautious stance ahead of the US President-elect Donald Trump's much awaited speech later in the day.

However, the lack of any new details regarding his economic plans appeared to trigger a late bout of selling in the greenback which saw all the major currencies quickly rebound from their lows of the day, Sterling among them.

As of 1841 GMT, the US dollar spot index was 0.59% lower to 101.41, while cable was up 0.6% at 1.2240 after having hit a session low of 1.2038.

The European single currency was also to be seen higher, rising 0.31% to 1.0596, while the dollar also retreated against the yen, to 114.98 from a session high of 116.88.

Of revelance for the pound, in remarks to the Treasury Select Committee, Governor Mark Carney revealed the BoE is keeping an open-mind over potential interest rate hikes while at the same time reiterating that the central bank is willing to pull back on stimulus if needed.

Weakness in the dollar was widespread, with the unit losing 0.79% to 59.68 against the ruble despite what appeared to be a slightly harder stance from the president elect towards indications that Russia might indeed have been involved in hacking during the elections.

In parallel, during his Senate confirmation hearing following his nomination to lead the State Department, Rex Tillerson said Russia had acted against US interests but called for an "open and frank dialogue".

Against the Mexican peso, gains in the US dollar were holding, after Trump reiterated his intention to build a wall along the border and to tax firms thinking of transferring production abroad.