Closed in NY at $1.5919, having been pulled lower by the deeper EUR/USD fall, to a session low of $1.5905. Rate therefore closed above its key 200-dma level at $1.5902 (today $1.5899) and is seen keeping its recent underlying buoyant tone in place. EUR/GBP reflected this buoyancy in cable through NY trade Wednesday’s, breaking under stg0.8400 to extend its corrective pullback off recent highs of stg0.8490 to stg0.8366. Rate consolidated this move in Asia with trade contained within stg0.83675/0.8382. Cable touched an early low in Asia of $1.5914 before edging higher, the rate tracking EUR/USD and trading to an eventual recovery high of $1.5935. Rate had slipped back toward opening levels ahead of the European open with macro demand for dollars taking it through the overnight base and on to $1.5895. However, dip has attracted demand and allowed rate to recover back above the figure at writing. Support seen to $1.5890 with stops below, a break to open a deeper move toward $1.5870 ahead of $1.5850. On the topside, offers seen between $1.5940/50 ahead of $1.5970.
EasyForexNews Research Team