Closed in NY at $1.5858 after correcting back from a NY recovery high of $1.5891 (the rate having seen highs earlier in Europe at $1.5912). Rate eased on to mark session lows in Asia of $1.5858 before edging back to settle between $1.5855/65 through the Asian afternoon. Early demand into Europe has extended the topside to $1.5868, currently holding back at $1.5864. Euro-sterling consolidated Thursday’s extended rally to stg0.7935, with trade through Asia contained by stg0.79165-0.79235. Interest this morning will be on the release of UK 2Q GDP second reading with market expecting an improved number of -0.5% from the initial reading of -0.7%. Expect disappointment if this is not achieved as it is expected to turn attention back toward UK fundamentals (weak releases of late) as well as the UK’s poor fiscal state, which the market seems to have lately ignored. Support seen at $1.5855/50 ($1.5854 50% $1.5796 into FOMC Minutes to $1.5912) ahead of $1.5825/20. Resistance noted at the NY recovery highs at $1.5891, with offers seen dotted from here through to $1.5912. (100-wma $1.5918).
EasyForexNews Research Team