Closed in NY at $1.5115, just off session highs of $1.5118 seen after rate had performed an interesting recovery off post UK construction PMI react lows of $1.5000. The move was seen mainly driven by euro-sterling as this rate reacted to the general softening of the single European currency. The cross was pressed to NY lows of stg0.8614 and held heavy into the close. Cable’s recovery extended into Asia, the move up gaining a boost on the back of stronger than forecast BRC retail sales data which took it to a high of $1.5142, as the cross extended its lows to stg0.8608. Cable then settled into a basic range between $1.5120/40 through the Asian afternoon, pressing back to $1.5118 as early Europe take their seats. The cross opens Europe back around stg0.8622. UK services PMI at 0928GMT provides today’s main focus, a weak showing expected to place market on a QE extension footing, though most do not expect the BOE MPC to act Thursday. Cable offers remain in place between $1.5140/50, a break to expose recent highs at $1.5186. Support seen back at $1.5110/00 with stops placed on a break of $1.5090. Next support seen into $1.5070.
EasyForexNews Research Team