Cable closed in NY at $1.5837, having seen extended recovery highs in this session 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 AUD and EUR/USD, with rate touching a high of $1.5857. Rate settled between $1.5845/55 through Asian mid session before dipping to retest earlier lows. Fresh demand greeted the dip, allowing rate to recover, settling around $1.5850 into Europe. Early downside pressure on EUR/USD into Europe weighed on cable, taking it initially down to test the overnight low before extending to challenge the 38.2% retrace level (of $1.5707/1.5884) at $1.5815. This support allowed the cross to break back under stg0.8300, having seen fix driven highs of stg0.8344 Wednesday, with rate consolidating move around stg0.8300 ahead of NY. GBP got a late morning spike to $1.5859 on China Wen comments on EFSF/ESM funding considerations, but react gains quickly pared, taking rate to $1.5825.
EasyForexNews Research Team