Closed in NY Thursday at $1.5076 after rate had performed an impressive recovery from intraday lows of $1.4915 to a high of $1.5119. For most of Thursday’s session the rate appeared to have been anchored by a large $1.4950 strike option expiry for today’s NY cut, with knowledge of another large expiry at $1.5100 for Monday’s maturity pushed into the background. Option expiries for today’s NY cut include that mentioned $1.4950 strike as well as a large $1.5150, which along with Monday’s interest could provide rate some buoyancy via the upside attraction. In Asia cable managed to make a brief show back above $1.5100 to $1.5105 before drifting off to $1.5069 during the Asian afternoon. Rate has since recovered, edging to $1.5089 into Europe. Asia were happy to consolidate Thursday’s recovery, market now waiting to see how position adjustment into the weekend will affect, noting the large option plays. BOE King comments overnight that the Bank was not looking to push the pound lower and that level of sterling was around fair value had little effect on the rate though some suggest it did support the recovery. Euro-sterling was pressed to lows of stg0.8612 Thursday, the rate consolidating this move between stg0.8615-0.86365 in Asia.
EasyForexNews Research Team