Closed in NY at $1.6244 after rate had pulled back from session highs of $1.6267 to $1.6237 ahead of the close. Initial sales into Asia saw rate retest that late pullback low at $1.6237 before it recovered, meeting resistance around the $1.6245 level. Yen demand into the Tokyo fix caught market wrong footed and squeezed out a few yen shorts, the move taking cable to lows at $1.6233. Rate recovered, the move up gathering momentum as the BOJ announced further easing measures. Strong sales of yen allowed cable, via sterling-yen, to push back up to $1.6255, with rate holding firm into early Europe. Offers are seen in place to $1.6260 (76.4% $1.6268-33) a break to expose area of recent highs between $1.6268/73. Continued talk of barrier interest at $1.6275 and $1.6300 seen attracting defence sell interest ahead. Bids remain in place between $1.6220/00. BOE Minutes the main domestic event of the day with the vote to keep rates/QE unchanged at the last meeting expected to show 9-0. Traders will focus on comments, some looking for a move away by some members to an expansion of QE, expected at the November meeting.
EasyForexNews Research Team