Closed in NY at $1.6005, below its focus 200-week moving average at $1.6014, though rate had traded to an intraday high of $1.6037 earlier in the session. The release of stronger than forecast Chinese PMI data on Sunday gave an early boost to risk into opening Asian trade, the rate getting lifted to $1.6030 before upside momentum faded with rate drifting lower through the balance of the session to a low of $1.5979. Rate recovered to $1.5995 ahead of the European open with rate pressed back to retest overnight lows into the open. Manufacturing PMI for the UK due up at 0828GMT and expected to provide some influence, with next note of interest seen this afternoon and the US ISM release at 1400GMT. Sterling’s underlying positive tone remains in place, despite closing below its 200-week m/a, the remaining at $1.6014 and will provide focus into this Friday’s close (though with most markets closed Friday, Thursday’s close will become important). Offers remain in place from $1.6030 and extend through Friday’s high at $1.6037 toward the barrier at $1.6050. Support $1.5965 through to $1.5950 with stops below.
EasyForexNews Research Team