Closed in NY Friday at $1.5801, after rate had seen highs in the NY session of $1.5845, easing back to $1.5792 before edging back into the close. Sterling’s recent poor performance was given some respite, Mark Carney’s appearance before the TSC Thursday showed him to be less dovish than had been perceived and prompted a paring of short sterling positions into the weekend. For this week UK CPI on Tuesday provides the early interest, analysts expecting a slight move higher in inflation. Wednesday brings the Inflation Report, though this not seen as carrying the same weight as it has done in the past as regards predicting policy action (RBC). Holidays in several Asian centres, Chinese new year and Japan National Foundation Day, expected to make for a fairly subdued Monday session. Sterling moves expected to again come from euro-sterling activity, trade open to headline risk as the Eurogroup meets, which could prompt some comment from officials. Cable extended its corrective pullback lows to $1.5785 in early Asia before it recovered to hold around $1.5800 for most of the overnight session before edging to $1.5810 into Europe. Offers $1.5810/15 ahead of $1.5830 and $1.5845/50. Support $1.5785/75, stops below $1.5770.
EasyForexNews Research Team