Cable closed in NY around $1.5890, after rate had bounced from traded lows at $1.5833 to a session recovery high of $1.5895. Rate resumed its recovery tone into Asian trading, pushing to a high of $1.5909 (Europe high Weds) before settling between $1.5895/05 ahead of Europe. Moves through Asia were basically led by EUR/USD as EUR/GBP consolidated Wednesday’s losses, the cross extending recent lows to stg0.8262, with trade overnight contained within stg0.8265/73. GBP opened Europe with a buoyant tone though failed to extend the overnight highs. Rate was pulled back below $1.5900 on EUR/USD slippage, but EUR/GBP easing to retest stg0.8262 diverted some of the pressure. Release of weak UK manufacturing data dropped cable to $1.5865, but EUR/JPY break of Y108.00 weighed heavier on EUR/USD and overtook cable react slippage. The cross extended lows to stg0.8250 and provided some cable support but the break of $1.3100 took cable through $1.5850 and Wednesday’s lows to $1.5821. Cable was holding heavy ahead of NY.
EasyForexNews Research Team