Closed in NY at $1.5935 after correcting back from NY session highs of $1.5943. Rate continued to pare Thursday’s gains into early
Asia, the rate touching a session low at $1.5923 before edging back to $1.5938 ahead of the European open. Risk appetite remains in play, supported by Thursday’s ADP data which has supported a positive forecast outcome to today’s US NFP (supported also by overnight release of an upbeat Monster Index). ECB Draghi announced the already leaked bond buying programme, market now awaiting implementation to take full risk on benefits. UK data sees UK IP, PPI and BOE-GfK inflation outlook at 0830GMT, though this afternoon’s US NFP to overshadow. Cable resistance remains between $1.5940/50,with barrier interest noted at $1.5950. A break here to open a move on toward $1.5980, with offers seen from this level, extending toward the larger barrier interest at $1.6000. Euro-sterling was contained by stg0.79275-0.7932 through Asia. Comments from Eurozone officials, following yesterday’s ECB announcement will be in focus. Cross offers remain at stg0.7950/60, support stg0.7910/00.
EasyForexNews Research Team