Cable closed in NY Monday at $1.5655, just off lows of $1.5652, with sterling having been under pressure through Monday’s session as traders adjusted positions ahead of today’s inflation data (0930GMT) and tomorrow’s Inflation Report (with attention more on UK growth forecasts). The move lower in sterling allowed euro-sterling to recover a good part of last Friday’s losses, the rate having seen extended lows of stg0.8442 in Asia Monday before pushing up to stg0.8573 in NY. Trade overnight saw rate consolidate this correction between stg0.85455-0.85665, holding around stg0.8550 into Europe. Cable posted an early high of $1.5670 before easing lower again, the move targeting stops sub $1.5650 as rate pressed down to $1.5642. Rate had settled back between $1.5650/60 ahead of Europe. Cable demand seen in place from $1.5642 through to recent lows at $1.5630 (traders note a long term trendline coming through this area), with stops below $1.5620. Resistance $1.5670/80.
EasyForexNews Research Team