Cable closed in NY at $1.5909 after recovering off a late session pullback low of $1.5888, with the corrective rally continuing into Asia as rate edged on to $1.5930. The rally trailed EUR/USD, which in turn allowed EUR/GBP to edge up from early Asian lows of stg0.8234 to stg0.8249. Both rates were seen holding firm into early Europe, mainly supported by the buoyant tone in EUR/USD. EUR/USD ran into strong resistance at $1.3150 before turning lower, concern over Portugal banking stock weighing on the euro which pressed EUR/GBP off early extended highs of stg0.82525 to challenge support at stg0.8235. Cable trailed EUR/USD pullback, as the cross diverted part of the pressure, moving down from $1.5938 to retest overnight lows at $1.5913. Cable lifted to $1.5930 as the cross triggered stops below stg0.8235, taking it to stg0.8227. Cross recovered with EUR/USD to stg0.8235. React to a wider UK trade deficit was met by strong demand which spiked cable to $1.5957 before settling around $1.5930.
EasyForexNews Research Team