Early Asian reserve manager demand was met by leveraged sellers in the US afternoon as cable tracked the softer euro-dollar to close in NY at $1.6130. Euro-sterling bounced off European lows of stg0.8003 to print stg0.8037 after encouraging US labour data, later paring gains to close in NY at stg0.8025. Cable opened flat in Asia with traders reporting of light volumes, before grinding lower to $1.6103 on dollar strength across the board. The rate met support ahead of bids at $1.6100 and recovered to $1.6120, before tracking sharp euro-dollar slippage to print lows of $1.0685. Support seen on the downside at $1.6080, ahead of $1.6065/64 (21 dma, Former 23.6% of $1.5269-1.6309). Euro-sterling was tied to a narrow range before falling on Swiss name supply in euro-dollar to stg0.8012, later bouncing to stg0.8020 ahead of Europe. The 55 dma provides support at stg0.8010, a break opens strong demand into stg0.8000. UK data for the week concludes at 0930GMT, with the release of UK October Markit/CIPS Construction PMI.
EasyForexNews Research Team