Closed in NY at $1.5100 after NY trade was contained within a range of $1.5078-1.5144 leaving euro-sterling to track euro-dollar slippage, the rate extending its recent corrective pullback to stg0.8506 before it closed around stg0.8520. Cable eased to early lows of $1.5086 in Asia before fresh demand emerged to take rate to session highs of $1.5107. Rate then reversed tack, moving down to $1.5080 through the Asian afternoon before recovering above $1.5090 ahead of the European open. The cross touched a low of stg0.8519 before it recovered to stg0.85375 through the balance of the session. Sterling has been able to weather the euro problems fairly well, but today’s UK Budget will likely prompt some paring back of any sterling longs as market awaits the announcement, especially anything concerning the BOE’s remit. The Budget will be announced at 1200GMT. Ahead of this BOE Minutes and employment data are due for release at 0930GMT. Most expect no change in the 6-3 split on QE extension. Cable demand remains in place at $1.5080/70 ahead of $1.5050/40. Resistance $1.5100/10 ahead of $1.5135 through to $1.5150. In the cross, demand remains in place between stg0.8510/00, resistance stg0.8540/50 ahead of stg0.8575/85.
EasyForexNews Research Team