What's Going on With Sterling Shorts?

Cilios Genakis is the head of European FX strategy over at City. John Defterios: Sterling pushed through 120, what went right or rather what went wrong for some of these calls? CiliosGenakis: I think there has been a pricing out of the excessive risk premium related to the fiscal policies that were basically announced back at the end of September. Given the fact that we are now in an environment of relative dollar weakness, Sterling has pushed higher and you get the unwinding of the sterling shorts. If you want to gauge the direction of sterling, it wouldn't be looking at cable because cable is going to be the mirror image of what the dollar is doing.