Closed in NY Friday at $1.6039 after recovering from post US jobs data lows at $1.6002 to $1.6044. Rate was pressed back to $1.6023 into early Asian trade, as rate tracked early pressure on euro-dollar, with recovery efforts capped at $1.6043 as move met offers placed between $1.6040/50. Rate drifted lower through the balance of the overnight session, touching a low of $1.6017, currently around $1.6026. Euro-sterling saw lows Friday of stg0.8045, the move lower in the cross providing cable with buoyancy. Euro-sterling in Asia extended lows to stg0.8033 in opening trade, as the euro came under pressure from weekend reports of Italian PM Monti to offer resignation after the budget passes. Rate recovered through the session to stg0.8057 before it settled between stg0.8045/55 ahead of the european open. Sterling retains a safe haven status which so far has allowed it to shrug off a series of weak data. Cable demand remains into $1.6000, a break to open a deeper move toward $1.5980 ahead of $1.5960/50. Resistance $1.6040/50 ahead of $1.6080 and $1.6100. Direction to be led by euro-dollar.
EasyForexNews Research Team