Closed in NY at $1.5159 after recovering off a late pullback low of $1.5142 (intraday low $1.5135). Rate touched $1.5154 into early Asia before fresh demand emerged to take it to an overnight high of $1.5168. Recovery faltered as strong dollar-yen emerged, prompting general dollar demand which weighed back taking cable to eventual lows of $1.5149. Rate recovered ahead of Europe to $1.5164, settling around $1.5155 into the new session. Euro-sterling was contained within a range of stg0.8473-0.84855 having seen a recovery high of stg0.8499 Tuesday, off lows of stg0.8460. UK domestic data includes the final reading for Q4 GDP at 0930GMT (median -0.30%QQ, +0.3%YY), though the FPC bank capital announcement, market looking for any change to its estimate stg24-60bln shortfall, the main interest. Focus also on Cyprus developments with data on the day mainly composed of EZ periphery releases, with EZ confidence data due at 1000GMT. A light US calendar follows into the afternoon. Cable support remains around $1.5150 ahead of $1.5135/25. Resistance $1.5165/75 ahead of $1.5200/10. In the cross, main support seen at stg0.8460, with resistance remaining into stg0.8500.
EasyForexNews Research Team