Opened Asia just off Wednesday’s lows of $1.5574, having eased back from late recovery highs of $1.5610. Rate recovered in early Asia to $1.5596, the move falterin ahead of $1.5600, before settling between $1.5580/95 for the balance of the overnight session. Rate currently trades around $1.5590 into early Europe. Trade through the Asian session was described as generally subdued, following on from the US holiday, though the underlying tone was seen as risk off. Attention today turns to the interest rate decisions from the BOE and the ECB. Markets are expecting an expansion in QE, though size suggested could be between stg50bln to stg75bln. The interest rate is expected to remain unchanged though some have suggested that a better option would be to cut instead of putting more money into the system. Demand in the $1.5580/70 area continues to buoy, a break below to expose stops, which if triggered to open a deeper ove toward $1.5550. Resistance noted toward $1.5600 with further offers seen placed through to $1.5610. Above here and rate can edge back toward the $1.5650/60 area.
EasyForexNews Research Team