Closed in NY at $1.5668, having been pressed to lows of $1.5648 during the session following dovish BOE Minutes. Rate was held between $1.5660/70 in early Asia before dipping to $1.5650 as rate tracked Aussie’s dip to take out barrier interest at $1.0600. Rate recovered through the balance of the session to $1.5678, getting a boost into early Europe to $1.5697 with moves generally driven by EUR/USD. Rate currently holds firm, trades around $1.5691. EUR/GBP, which had provided a lot of the negative weight on sterling post BOE Minutes, had been driven to a high of stg0.8460 in NY (on reported European sovereign buys), extending the rally to stg0.8463 in Asia before settling around stg0.8460. Sterling remains bruised following Wednesday’s BOE Minutes, though some suggest that while the cross can hold below stg0.8480 (100-dma stg0.8476) it could allow for a deeper pullback and thus provide recovery lift for cable. Cable offers seen to $1.5700, a break to open a move to $1.5710/15 ahead of $1.5730/35 and $1.5750/60. Support remains in the area between $1.5650/40 with stops below.
EasyForexNews Research Team