Sterling remained on the defensive and after posting an Asian session high of $1.6256, slippage continued in the US afternoon. Release of hawkish FOMC minutes pressed further and the rate triggered stops to lows of $1.6091, before a modest bounce towards the close. Euro-sterling eased off US afternoon highs of stg0.8120 to close at stg0.8105. Early demand in Asia lifted cable to $1.6099 before fresh selling emerged and pared light gains. Stops flushed in euro-dollar added further weight and extended losses to $1.6059, before the rate bounced to $1.6075 and settled in a tight range ahead of Europe. On the downside strong demand seen into $1.6050 which also holds key tech support from the 100-day ma, a break opens $1.6040 (61.8% of $1.5829-1.6381). Euro-sterling slipped to stg0.8100 where the rate met strong support, held firm, and recovered to stg0.8114 amid light flow. Data release light in the UK today with highlights from PMI Services, released at 0930GMT.
EasyForexNews Research Team