Closed in NY Monday at $1.4914, after easing from a recovery high of $1.4933 after rate had seen lows of $1.4866 earlier in the day. The late NY pullback extended to $1.4910 into early Asia before rate edged to $1.4919 (session highs) before the corrective pullback continued. Rate made a show under $1.4900 at $1.4898, recovered to $1.4912 before pressing to an overnight low of $1.4885. Failure to push back above $1.4900 saw rate drift lower ahead of the European open, approaching the mentioned overnight low at writing. All attention on today’s release of UK production data at 0930GMT with most preparing for another set of disappointing data (medians IP +0.1% m/m, mfg flat m/m). Market seen well positioned for this outcome so an expected, or better than expected outcome, could catch the market wrong footed. Support seen into $1.4885/80 ($1.4882 76.4% $1.4866-1.4933), a break here to expose that $1.4866 level, with stronger demand seen into $1.4855/50. Resistance remains at $1.4930/35 ahead of $1.4950/60. Euro-sterling was contained by stg0.8740/50 through Asia.
EasyForexNews Research Team