Closed in NY at $1.6108, having seen highs intraday of $1.6131 before pulling back to $1.6081. Rate remained above $1.6100 through Asia, marked early lows at $1.6104 before edging higher through the session to $1.6125. A quick drop back to $1.6105 met fresh demand which lifted it back to $1.6120 into the European open. Data calendar in the UK is light with main market attention on this evening’s FOMC policy announcement and the chance for QE3. This speculation has kept the dollar on the back foot, a confirmation likely to cause a knee jerk reaction but market seen well positioned for this outcome. Failure would see a move back into dollars. Cable offers remain in place between $1.6140/60, a break to open a move on toward $1.6180 ahead of stronger interest placed toward $1.6200 ($1.6199 May8 high). Support remains into $1.6100, a break here to allow for a deeper move toward $1.6080. Euro-sterling holds above stg0.80, trade through Asia contained by stg0.80085-0.80205 as rate consolidated Wednesday’s climb to stg0.8028. Headlines during the day to influence activity.
EasyForexNews Research Team