Cable closed in NY at $1.5707, off an extended recovery high of $1.5748 after rate had bounced from a pullback low of $1.5621 (76.4% $1.5603/74) on strong fix demand and heavy EUR/GBP sales from a major French name. Rate was recovering off late NY pullback lows of $1.5674, and extended to $1.5713 into early Asia. Rate reversed as USD/JPY led dollar demand weighed. Cable pressed back to $1.5674, recovered to $1.5690 before dropping down to $1.5650 ($1.5651 76.4% $1.5621/1.5749) as USD/JPY pressured its way through an option barrier at Y83.25. EUR/GBP saw lows Tuesday of stg0.8324, having been pressed back from extended highs of stg0.8424, with rate consolidating move between stg0.8323/33 through Asia. Sterling picked up fresh demand into Europe, the break of stg0.8315 aided cable’s recovery above $1.5700 with rate able to extend to $1.5745 before meeting decent supply. Release of UK employment data knocked sterling back, cable to $1.5698, taking the cross back up from extended lows of stg0.82955 to stg0.8320.
EasyForexNews Research Team