Closed in NY Tuesday at $1.5126 after pulling back from a late recovery high of $1.5156, seen after it corrected off session lows of $1.5112. Rate initially tracked euro-dollar higher into early Asia, the rate posting highs of $1.5137 before turning lower post fix, meeting demand ahead of $1.5100 which cushioned the base through the early part of the Asian afternoon. Fresh selling emerged ahead of Europe, the supply triggering stops sub $1.5100 that took it to lows of $1.5080, but demand placed between $1.5080/70 (recent low $1.5073 Feb25, Asia reaction to Moody’s UK downgrade) supported, though recovery efforts remained below $1.5100 ahead of the European open. Euro-sterling, which had seen Italian election react lows of stg0.8576 Wednesday morning recovered through Tuesday trade, the move up reportedly driven by end month demand. This recovery extended through Asia, pushing to stg0.8660/65 ahead of Europe (stg0.8667 38.2% stg0.8815-0.8576; stg0.8696 50%). BOE Bean due to speak at 0920GMT ahead of Q4 GDP first revision at 09030GMT. Cable demand remains at $1.5080/70 ahead of $1.5050 option barrier. Resistance now seen initially into $1.5100 ahead of $1.5115/20 and $1.5140/50.
EasyForexNews Research Team