Cable bounced to $1.5875 on release of the FOMC minutes that revealed a number of committee members favoured more quantitative easing after the end of Operation Twist. The move was short lived and the rate ground lower throughout the US afternoon to close at $1.5845. Euro-sterling closed at stg0.8040, the rate having recovered off pullback lows of stg0.8035 after earlier posting a high of stg0.8049. Cable opened heavy in Asia and traded through the 200-day ma to lows of $1.5837, before the rate lifted in tandem with euro-dollar’s extended recovery to $1.5855. The pair settled in a tight 10 pip range ahead of the European open. Support seen on the downside at $1.5820, stronger behind at $1.5805/00 ($1.5806 – 55-week ma). Tech resistance seen at $1.5864/66/78 (Jun Rising Trendline, 5-day ma, 100-day ma). Euro-sterling remained in consolidation mode with trade tied to a narrow stg0.8030-44 Asian range. Data light in the UK today with highlights from Retail Sales, released at 0930GMT.
EasyForexNews Research Team