Closed in NY at $1.5902 having pulled back from a session high of $1.5934. Rate was squeezed to an extended low of $1.5892 as rate took direction from euro-dollar, which in turn reacted to the Aussie sell off following release of Australian jobs data. The bounce back in Aussie took cable to $1.5907 before rate settled around $1.5900 into Europe. Fairly subdued trading in Asia as markets await today’s key ECB rate decision/Draghi press conference (1145GMT/1230GMT). The ECB announcement will over shadow today’s BOE rate decision at 1100GMT with most expecting no change in UK rates/QE (most expect an expansion in QE at the Nov meeting). Cable expected to take direction from euro-dollar moves, with euro-sterling holding within an outside range of stg0.7880-0.7960, the Asian range overnight contained by stg0.79205-0.79345. Cable offers seen in place at $1.5940/50 ($1.5950 barrier), more from $1.5980 through to the larger barrier at $1.6000. Support $1.5890, stronger into $1.5850.
EasyForexNews Research Team