Closed in NY at $1.5106 after recovering off a late NY pullback low of $1.5088. The late recovery continued into early Asia as rate edged on to $1.5114 before this early bid interest faded and rate tracked euro-dollar’s corrective pullback to $1.5085. Recovery back to retest earlier highs before rate drifted off, settling around $1.5100 into Europe. Cyprus headline risk remains key on the day, recent comments from a Cyprus government official suggesting that today’s vote will reject the levy proposal prompted a quick risk aversion move that favoured the dollar. Moves in cable overnight tracked euro-dollar for the most part, the cross holding between stg0.8573/84 during the main opart of Asia, before it was shoved down to stg0.8566 on that Cyprus comment. UK domestic data sees PPI input/out prices at 0930GMT, though most attention will be on Cyprus headlines. Cable support seen at $1.5085/75 ahead of $1.5060/590. Resistance $1.5145-60 with stops placed on a break above. Euro-sterling support seen at stg0.8565/55 ahead of stg0.8535/30. Resistance stg0.8595/00.
EasyForexNews Research Team