Closed in NY at $1.6069 after rate had again found support in the $1.6035/30 area with rate able to recover at one point during the NY session to $1.6102. Rate had eased to $1.6046 before recovering into the close. Early Asia saw some thin liquidity volatility with rate bouncing between $1.6060/80 before it broke lower during the Asian afternoon, retesting that late NY pullback low of $1.6046 where it again has found support. The deeper corrective pullback seen in euro-dollar Tuesday saw euro-sterling ease back below stg0.83 to stg0.8266, with trade through Asia consolidating this move between stg0.8267/83, opening Europe around stg0.8272. This move lower in the cross provided cable with some buoyancy, though underlying tone remains heavy while it struggles to take full advantage of any risk-on plays while UK data, but while it holds above $1.6030 seen keeping some recovery hopes alive. A light UK data calendar will leave rate open to outside influence, with cross plays continuing to determine direction.
EasyForexNews Research Team