Closed in NY $1.6112 after rate had been pressed to lows in this session of $1.6085 as market reacted to S&P putting the UK outlook to negative from stable (catching up on Moody’s and Fitch). Early Asian trade saw rate trade between $1.6110/15, marked lows at $1.6105 before attracting fresh buying that took rate to an initial high at $1.6123. A brief dip back to $1.6114 before rate edged on to session highs at $1.6142, holding firm into early Europe. Offers seen in place to $1.6150/55 ($1.6151 76.4% $1.6172-1.6085/$1.6154 Thursday high), a break to open a move back to $1.6170/80 ($1.6172 Dec12). Support remains in place between $1.6115/00, a break to open a deeper move back toward $1./6085/80. Euro-sterling saw an extended recovery high of stg0.81205 after the S&P move, eased off to stg0.80125 in early Asia before nudging higher again, able to make a show above resistance at stg0.8120 but so far struggling to build. A clear above stg0.8120 to expose recent highs at stg0.8147. A light domestic calendar will have sterling taking direction from Eurozone and US developments.
EasyForexNews Research Team