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Hardy: Sterling could fall further and here's why

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Sterling has been falling since last week particularly against the dollar. But Saxo's John Hardy explains why he thinks cable could move lower, particularly if there is good data out of the United States next week.

And it's those calendar events that are so important, says Hardy. Ahead of US Thanksgiving on Thursday, there is the PCE inflation index out on Wednesday, which is the Federal Reserve's preferred measure of inflation. If it comes in low, he says we could see some USD consolidation. 

Next Wednesday the chair of the Fed, Janet Yellen, makes a major speech, which John says may provide some major signals. On Friday the nonfarm payroll figure is released which if strong (like October's) could see the dollar move even higher. In between these two events is the European Central Bank meeting at which ECB president Mario Draghi is expected to extend easing.

Finally, John explains why he has been buying the Aussie dollar. He discusses key levels and what to look out for.