Closed in NY Friday at $1.6171 after recovering off a corrective pullback low of $1.6152. Rate tracked euro-dollar moves through Asia with traders reporting very light cable trading going through the systems. Rate touched a low of $1.6143 before recovering through the balance of the overnight session to a high of $1.6175 ahead of the European open. Christmas Eve and trading rooms in Europe expected to be working with skeleton staffing. Low liquidity could make for volatile moves if any orders are executed, as well as reaction to developments in the Fiscal Cliff negotiations. If a deal is seen closer can expect the dollar to lose ground; if sides seen moving apart traders expect bigger outflows from risk positions which should benefit the dollar. Cable support remains in place between $1.6150/40, a break to allow for a deeper move toward $1.6120 ahead of $1.6100. Resistance $1.6175/80, more toward $1.6200. Euro-sterling trade through Asia was contained within a tight stg0.8150/61 range leaving cable to take direction from euro-dollar.
EasyForexNews Research Team