Closed in NY at $1.6196 after pulling back from a late recovery high at $1.6262 (had seen decreasing highs of $1.6267 and $1.6264 during the session) to a session low of $1.6181. This move saw euro-sterling extend its recovery off European morning lows of stg0.7936 to stg0.79855. Cable stepped its way to an early recovery high of $1.6209 in early Asia before rate turned lower. Euro-yen sales, as well as a corrective pullback in Aussie and Kiwi, provided a fresh risk aversion tone which weighed, cable easing back to pivot around $1.6200. Strong sales of euro-dollar took cable down with it, the rate breaking below its Sep20 low at $1.6164, with the triggering of stops below $1.6160 extended the move to $1.6150. Profit take demand greeted the dip, with rate trading around $1.171 into early Europe. Euro-sterling traded between stg0.79565-0.7970 in Asia, currently around stg0.7963. Sterling continues to take direction from risk though end of week euro-sterling orders (EU CAP payment to the UK opposed in part by end month Buba demand) and position adjustments into month end also affect.
EasyForexNews Research Team