Closed in NY at $1.6077, after rate had seen an impressive recovery rally through the NY session to a high of $1.6096 before it eased off to $1.6064, recovering into the close. The recovery extended to $1.6085 into early Asia before drifting off to session lows of $1.6069. Fresh demand through the Asian afternoon lifted rate back through its early high and on to $1.6090 ahead of the European open, with rate holding firm. Moves through Asia were seen mainly influenced by euro-dollar moves as the cross was held within a range of stg0.8045/56. Cable offers remain in place toward $1.6100 ($1.6096 Monday high/$1.6101 76.4% $1.6131-$1.6002), a break to open a move on toward $1.6120 ahead of recent highs at $1.6127/31. Support $1.6080/70 ahead of $1.6050. Sterling remains a favoured safe haven, able to take advantage of current dollar weakness as market turn attention toward Wednesday’s FOMC policy decision and hopes that the US is moving toward a Fiscal Cliff resolution.
EasyForexNews Research Team