Closed in NY Tuesday at $1.5133, the rate having recovered off a NY session low of $1.5094 into the close. Cable had earlier in the day seen highs of $1.5200, seen as a reaction to the release of stronger than forecast UK services PMI which was seen offsetting recent weak manufacturing and construction PMI data and putting forecasts for QE extension away from Thursday’s BOE meeting. Cable recovery continued through Asia, the rate pushing up to $1.5155 ($1.5160 76.4% $1.5181/1.5094) before momentum faded, though corrective pullbacks remained shallow. A move above $1.5160 to open a retest of $1.5181 ahead of $1.5200. Support now seen at $1.5115/10 ahead of $1.5100/1.5090. Euro-sterling closed in Ny at stg0.8624, the rate having seen lows of stg0.8589 post PMI data, recovered to stg0.8632 before drifting off into the close. Trade in Asia was confined to a relatively tight stg0.8621/33 range. No UK data of note on the calendar with moves to come from position adjustments ahead of Thursday’s rate decisions from the BOE and ECB.
EasyForexNews Research Team