Closed in NY at $1.5990, the rate having seen a correction off $1.5930 intraday lows to $1.6005 before it eased off in early NY to $1.5968, recovering into the close. Rate turned lower into Asia, the move down to $1.5970 influenced by the early selling in euro-dollar. Rate recovered with euro-dollar, as the dollar came under pressure through dollar-Asia sales, which in turn was influenced by benign Chinese inflation data. Cable traded to an initial high of $1.6014, eased to $1.6005 before edging on to a session high of $1.6020. Rate drifted lower but remained buoyed above $1.6000 ahead of the European open. Euro-sterling consolidated Thursday’s move to stg0.7961, with trade in Asia contained within stg0.7970-87. Short euro-sterling positions taken into the BOE and ECB rate decisions/Draghi press conference may feel a little exposed as the ECB head was seen not as dovish as forecast and could allow for a short squeeze ahead of the long NY weekend which in turn could place a counter on cable recovery efforts. Cable bids $1.5970, $1.5950, $1.5930. Offers $1.6020, $1.6040-60.
EasyForexNews Research Team