Closed in NY at $1.5640 after recovering from an initial post NFP react low of $1.5518 to a high of $1.5658 before settling between $1.5630/50 into the close. Rate pushed up to $1.5657 into early Asia before dropping back to $1.5601, the dip attracting strong demand that lifted rate up to extended highs of $1.5666. GBP recovery was led by EUR/USD stronger move, with EUR/GBP extending its recent recovery with trade overnight contained by stg0.7920/0.79475, after seeing a high in NY of stg0.7924. Cable eased off highs to $1.5614 before settling between $1.5615/30 into Europe. Halifax House price data due up at 0700GMT but main domestic interest will be focused on this week’s (Weds) release of the BOE Inflation Report. A downgrading of the growth forecast expected, possibly below 0% for 2012, as well as to revise down its year end inflation forecast. However, this outcome is expected to be already in the price with markets to take direction on BOE King’s tone. Cable demand seen at $1.5620/15 ahead of stronger interest into $1.5605/1.5590. Resistance $1.5650/55 ahead of $1.5666.
EasyForexNews Research Team