Closed in NY at $1.6004 after rate had recovered off pressured lows of $1.5956 to $1.6010 ahead of the close. Cable was pressured back to $1.5964 in early Asian dealing, as rate continued to feel the downside pressure from euro-sterling extending its recent recovery gains, the cross edging on to stg0.8380 following on from Thursday’s break of barrier interest at stg0.8350. Cable recovered to $1.5988, as the cross eased off to stg0.8370, but the recent underlying negative tone in sterling remains in place, despite PM Cameron delaying his UK/EU keynote speech, which he was due to give today, due to the Algerian hostage crisis. Until there is clarity on the UK’s relationship with the EU going forward sterling expected to trade with a negative tone, with recent disappointing data not helping. Cable support now seen from $1.5965 through to $1.5950 with stops below, a break to open a deeper move toward $1.5920/10. Resistance noted at $1.5990/1.6000, a break to open a move back toward $1.6020, with stronger interest remaining at $1.6040/50. UK retail sales data due for release at 0930GMT and will provide the main domestic directional impetus. Euro-sterling offers stg0.8380,f stg0.8400. Support stg0.8350.
EasyForexNews Research Team