Closed in NY at $1.5896 after recovering off a session low of $1.5889. The move down Friday was seen influenced in part by euro-dollar slippage, but the announcement that the BOE would pay coupon payments over to the Treasury was seen by some as ‘back-door’ QE provided the initial negative shove. Rate tracked early pressure on euro-dollar into Asia, the rate posting session lows at $1.5891 before recovering, the rate stepping to a session high of $1.5912 ahead of the European open. Euro-sterling traded the session inside stg0.7997-0.8007, opening Europe just above stg0.8000. A NY holiday and a very light UK calendar expected to make for subdued trading conditions, with influence again to come from euro-dollar action. Cable support seen at $1.5888, with bids seen through to $1.5880. A break here to open a deeper move toward $1.5870 (100-dma) ahead of $1.5860/50. Resistance $1.5920 ahead of $1.5940/55, $1.5970 and $1.5985/00. Euro-sterling resistance seen between stg0.8005-15, a break to expose recent high at stg0.8031. Support stg0.7980 ahead of stg0.7960.
EasyForexNews Research Team