Closed in NY at $1.5996, after rate was pressed below $1.6000 to session lows of $1.5987 as sterling failed to take advantage of any risk haven inflows as traders adjusted positions ahead of today’s key UK Inflation Report. Most expect the Report to highlight growth concerns due to current Eurozone problems focused on Greece. Cable touched an early recovery high in Asia at $1.5997, but failure to break back above $1.6000 saw rate turn lower, pressing down to extended lows of $1.5957. Rate holds heavy into early European trade. EUR/GBP was held between stg0.7958-0.79705 after rate touched an extended 43-month low of stg0.7953 in NY. Rate currently trades around stg0.7963. UK employment data provides the initial domestic focus at 0830GMT, but the mentioned Inflation Report to overshadow. Cable bids seen into $1.5950 ahead of $1.5830/20 and $1.5900. Resistance remains into $1.6000. EUR/GBP bids remain into the option barrier at stg0.7950, a break to open a deeper move toward stg0.79365 (E1.2600). Resistance stg0.7980/85.
EasyForexNews Research Team