Closed in NY at $1.5891, off session highs of $1.5915, after rate had been pulled higher on the coat tails of EUR/USD stronger recovery, which allowed the cross to extend its recovery off lows of stg0.8283 to stg0.8343. More significantly cable closed above its 200-dma (Mon $1.5861, today $1.5859) which should further support the rate’s underlying buoyant tone. Rate eased to an early low of $1.5885 into Asian trade before pushing up to mark session highs at $1.5896 as markets were led by an early lift in the Aussie dollar following comments in the RBA Minutes. However, the early move was quickly reversed as BHP Billiton warned on China growth prospects on noting a decreased demand for iron ore from that region. Aussie dropped lower taking cable to a low of $1.5865 before it settled between $1.5865/75 for the balance of the session. UK inflation the highlight of the day, released at 0930GMT, with most expecting the y/y figure to come in at 3.3%. Bids $1.5865/55 ($1.5858-59 61.8% $1.5823/1.5915 and 200-dma) ahead of $1.5845 (76.4%). Offers $1.5900/05, $1.5915-30.
EasyForexNews Research Team