Closed in NY at $1.5833, after rate had seen session highs of $1.5855 before pulling back to $1.5809. Rate initially dipped to $1.2527 before edging to session highs of $1.5835. Rate then turned lower, tracking euro-dollar as this rate in turn took direction from Aussie-dollar as it reacted to softer iron-ore prices and positioning ahead of next week’s China PMI. Cable touched a low of $1.5822, with trade then bouncing between $1,5822-34 before pushing on to $1.5838 into early Europe as rate was pulled along by euro-dollar’s stronger recovery on the back of China Wen comments that China is willing to invest in European bonds. Cable offers seen placed at $1.5844 (76.4% $1.5855-08), a break here to target Wednesday’s high at $1.5855. Above here and rate can edge on toward $1.5875 (76.4% $1.5912-1.5754). Support remains at $1.5825/20 ahead of $1.5810/00. UK lending data at 0830GMT provides the domestic focus with end of week Jackson Hole remaining in focus, as well as any comments concerning Eurozone debt. Euro-sterling, which saw lows Wednesday of stg0.7906 consolidated between stg0.7915-30 in Asia.
EasyForexNews Research Team