Cable closed in NY at $1.5667, off session lows of $1.5660, with rate able to hold above the earlier Asian base at $1.5650 despite the Fitch outlook change for the UK to negative. Rate edged to overnight highs at $1.5671 into early Asian dealing before reversing lower, the rate extending its pullback lows off Tuesday’s highs of $1.5745 to $1.5636 (76.4% $1.5603/1.5749). Rate recovered, nudging its way back toward the earlier high before settling around $1.5660 ahead of Europe. Early Europe dollar sales took cable to an extended high of$1.5677. EUR/GBP was contained within stg0.8314/29 through Asia, with early demand into Europe extending the highs to stg0.8337. UK clearer demand for EUR/GBP spiked rate up to stg0.83505, inturn dropping cable to extended lows of $1.5634, but failure to clear below the $1.5636 area prompted demand to quickly appear, with the pullback in the cross on order exhaustion to stg0.8325 taking cable to $1.5673. EUR/GBP held back at stg0.8330, cable holding firm ahead of the NY open.
EasyForexNews Research Team