Closed in NY at $1.5979 after rate had recovered off intraday lows of $1.5957, seen after the pound came under pressure following release of softer than forecast services PMI data. Rate extended the recovery into early Asia, in tandem with euro-dollar’s early climb, the rate edging to an initial high of $1.5985. Rate eased to $1.5971, again taking its lead from euro-dollar, as well as reacting to the release of disappointing BRC retail sales data. Recovery off lows was given an added boost as risk in general was lifted by the Australian dollar spiking higher on the back of the RBA leaving rates unchanged (wide expectation for a cut of 25bp). Cable rallied to a high of $1.5992 and was holding firm into early Europe. Euro-sterling was held within a tight stg0.7996-0.8001 range through Asia. Domestic UK data has IP/manufacturing numbers released at 0930GMT, though today’s US election will provide the main background interest. Cable support seen at $1.5960/50, resistance $1.6000 ($1.5999 50% $1.6040-1.5957), a break to allow for a move to $1.6020 (76.4%) ahead of $1.6040/50.
EasyForexNews Research Team