Closed in NY at $1.6074 after easing back from recovery highs of $1.6086, having corrected off earlier session lows at $1.6021. Rate nudged back up to retest Tuesday’s high, as pre Tokyo market bought yen pairs in anticipation of a risk-on open. However, Japanese accounts sold back into the rally, pressing cable to lows of $1.6068 before rate met willing buyers that allowed it to recover through the Asian afternoon, moving above $1.6086 to extend recovery to $1.6090. Reported offers from $1.6085/1.6100 continue to provide a counter, but rate seen holding firm into early Europe despite suggestions we could see further end month demand for euro-sterling (European sovereign buys were reported Monday though there is still talk of more to be seen today). Euro-sterling traded between stg0.8056/65 through Asia, holding off recently posted end month driven highs of stg0.8073. NY markets due to reopen today, though activity expected to be hampered as transportation links to the financial part of Manhattan remain impacted by the effects of Hurricane Sandy. Cable stops $1.6105/10, more offers $1.6120/25.
EasyForexNews Research Team