Closed in NY at $1.6095, just off NY traded highs at $1.6116 and after recovering off a shallow pullback low of $1.6086. Rate extended its recovery to challenge the $1.6100 level but move met willing sellers at this level which took rate back to retest that NY pullback low, posting a session low at $1.6087. The post RBA rate cut bounce in Aussie-dollar (hawkish statement) provided a fresh boost for risk and lifted cable to a high of $1.6102. However, headwind sales prevented rate in building on this move and pressed it back around $1.6095 ahead of the European open. Offers remain in place between $1.6116/26 (Monday high/76.4% $1.6310-1.5829 respectively), a break to open a move on toward $1.6150. Support seen at $1.6085/80 ahead of $1.6050. Trade in euro-sterling saw this rate consolidate Monday’s ease to stg0.8107, with trade contained by stg0.8108/15. While cable pullbacks remain shallow seen keeping upside in focus. A light domestic data calendar should leave rate to take direction from euro-dollar moves, using it as a gauge for risk.
EasyForexNews Research Team