Closed in NY at $1.5837, having seen extended recovery highs of $1.5884 after the eventual break above $1.5800. Rate initially marked session lows at $1.5835 into Asian dealing before edging higher, the move up tracking the risk on moves in Aussie and EUR/USD, with rate touching a high of $1.5857. Rate settled back between $1.5845/55 through Asian mid session before dipping back to retest earlier lows. Fresh demand greeted the dip, allowing rate to recover back to settle around $1.5850 into Europe. Offers remain in place to $1.5890, more toward $1.5900 with stops above. A break here to open a move on toward $1.5930 ahead of $1.5950. Support noted back at $1.5835/30 ahead of $1.5800. Stops seen placed on a break of $1.5790. EUR/GBP was held between stg0.8309/0.83215 in Asia, having extended its recovery off Tuesday lows of stg0.8280 on strong fix related demand Wednesday. Construction PMI due out at 0930GMT, though traders await key services PMI for direction (seen as another factor determining possible size of QE expansion). US Bernanke at 1500GMT highlight of the day.
EasyForexNews Research Team