Closed in NY at $1.6055 after recovering off traded lows at $1.6029, the rate having seen highs earlier in the day at $1.6129. Tuesday had seen corrective action following on from Monday’s move into risk positions, with main moves led by yen recovery which in turn provided drive via the crosses. A quiet start in Asia saw early trade held within $1.6050/60 before rate edged up with euro-dollar to mark overnight highs at $1.6069. Rate drifted lower through the session, marking lows at $1.6037 (76.4% $1.6029-69) before recovering to $1.6058 ahead of the European open. Euro-sterling was held between stg0.8143/53, leaving cable to basically track euro-dollar moves, though action in this latter pair overnight was described as subdued. UK trade data due for release at 0930GMT provides the domestic morning interest. Cable demand seen placed at $1.6037 ahead of $1.6030/20 (covering recent lows at $1.6029 and $1.6022), with stops placed on a break of $1.6020. Further demand then seen at $1.6010/00. Resistance $1.6070/80 ahead of $1.6100/05.
EasyForexNews Research Team