Closed in NY at $1.4905 after rate was able to recover off UK production react lows of $1.4832, the rate posting recovery highs of $1.4914 ahead of the close. Rate drifted off to $1.4893 in early Asian trade but dip below the figure quickly picked up fresh demand which lifted it on to $1.4911. Sterling then gained a boost, the rate breaking up to $1.4954 on reported short covering, before it settled back between $1.4932/42 into Europe. Rate was picking up more demand into early Europe. Following the disappointing release of UK production data Tuesday the reaction was fairly muted as market was seen sitting short. The dip provided those positions to be covered with traders now looking for levels to re enter shorts, the view is still for further downside in cable. Euro-sterling, which had seen highs Tuesday of stg0.8793, was contained back between stg0.8720/45 in Asia, the cross seen in recent sessions to reluctantly push higher on reactive moves, but continues to meet willing sellers into rallies. This cross selling in turn has been a major provider of cable buoyancy. Cable bids seen at $1.4900/1.4890, a break to open a deeper move toward $1.4855/50 ahead of 2013 lows at $1.4832. Resistance $1.4950/60.
EasyForexNews Research Team