ED Spread : Lagging Cable ?

• 1 possible interpretation of current up leg from +72.5 to +84 = the equivalent of cable from 1.6110 to 1.6742 (since then, back down to 1.6254 now)
  
• Of course, cannot rule out the worst case scenario of uptrend continuation beyond +90 but think upside will be quite limited even so. Low risk of market pricing in >100 bp of rate hikes between Jun10 and Dec10
• Current Up move = fear of FOMC surprise on hawkish side? If so, short cable will perform. If not, spread will narrow back in.