Closed in NY at $1.5660, off FOMC inspired recovery highs of $1.5679. Holiday thinned Asia, Australia and India adding to China, though HK back today, saw cable consolidate the move, with trade contained within a very tight range of $1.5651/65. The dovish comments from the FOMC, pushing out the next hike into late 2014, as well as leaving the door open to further QE, weighed on the dollar across the board, though sterling was seen as a laggard. EUR/GBP managed to edge back up to stg0.8376 in NY, after seeing lows of stg0.8311, the cross in Asia holding between stg0.8364/79. GBP extended highs into early Europe to $1.5677, though holding off the NY top at $1.5679, with EUR/USD moving up to touch its 55-dma at $1.3132 and taking the cross on to stg0.8380. Dollar remains under pressure into early Europe, though with the return of the IIF to Athens market will be wary of Greek debt comment to dent the current risk on view. Cable currently trades around $1.5664, the cross around stg0.8379. Cable offers $1.5680, stronger from $1.5690 to $1.5710 with stops above. Support $1.5650.
EasyForexNews Research Team