Closed in NY at $1.6110 having seen a sharp corrective pullback from $1.6203 to $1.6067 as markets reacted to negative Fiscal Cliff comments. Rate recovered to $1.6118 ahead of the close as House Speaker called Republican members to reconvene Sunday which boosted hopes that a compromise could be reached. Cable marked lows into Asia at $1.6099 before recovering to $1.6122 as it tracked euro-dollar’s stronger recovery. Rate then found a base at $1.6105 before edging back to retest overnight highs into the European session. The volatility in cable, caused by the thin conditions saw euro-sterling spike to stg0.82245 in NY, with early trade in Asia consolidating this move between stg0.8217/23. Sales through the Asian afternoon squeezed the cross back to stg0.82135 and was holding heavy ahead of Europe. A light domestic calendar in the UK will keep focus on Fiscal Cliff developments. Cable demand seen at $1.6105/1.6095, stronger at $1.6080. Resistance $1.6120/35 ahead of $1.6150 and $1.6170 (76.4% $1.6203-1.6067). For the cross, resistance now seen into stg0.8225, a break to expose stg0.8245/50. Support stg0.8200, stg0.8185/80.
EasyForexNews Research Team