Cable closed in NY at $1.5891, off session highs of $1.5915, after rate had been pulled higher on the coat tails of euro-dollar’s stronger recovery, which allowed the cross to extend its recovery off lows of stg0.8283 to stg0.8343. Cable closed above its 200-dma (Mon $1.5861, today $1.5859) and seen supporting the pound’s underlying buoyant tone. Rate eased to an early low of $1.5885 into Asia before pushing up to session highs at $1.5896 as markets were led by an early lift in the Aussie dollar following RBA Minutes. BHP Billiton warning on China growth prospects took Aussie lower with cable pressed to $1.5865 before it settled between $1.5865/75 ahead of Europe. Rate edged to $1.5885 into Europe before tracking EUR/USD slippage, basing at $1.5835 before picking up demand interest. Asian sovereign buys saw rate recover to $1.5880 before settling around $1.5860 into CPI data. Strong release saw EUR/GBP drop to stg0.8316 while cable gains were countered by further EUR/USD slippage. Cable $1.5865 ahead of NY.
EasyForexNews Research Team