Closed in NY Wednesday at $1.5232, after rate’s corrective pullback had been given added weight as BOE Minutes QE vote showed a 6-3 split with Governor King and Fisher joining Miles in calling for an added stg25bln, taking the rate to eventual lows of $1.5192. Cable consolidated this fall in early Asia with trade contained within a range of $1.5225/40 before fresh dollar demand saw rate track euro-dollar lower to retest the $1.5200 level. The eventual break dropped rate to $1.5132, the thin Asian conditions acting like a vacuum, with demand emerging at the lows to allow rate to edge back to $1.5172 at writing. Euro-sterling, which had seen extended highs of stg0.8764 Wednesday was confined to a stg0.8710/59 range, trading around stg0.8735 into Europe. Resistance seen at $1.5175/85, a break to open a move back toward $1.5200, with $1.5215 corresponding to the 76.4% retrace of this last fall from $1./5240 to $1.5132. UK borrowing data at 0930GMT then CBI trends at 1100GMT to provide domestic data interest, but the current recovery in the dollar, following last night’s ‘hawkish’ FOMC Minutes expected to have further follow on effects.
EasyForexNews Research Team