Opened Asia at $1.5193, after rate had seen extended recovery highs of $1.5220 Good Friday, touched a pullback low of $1.5178 then settled between $1.5180/1.5205 ahead of the April open. Early trade in challenged the topside of that mentioned range before it turned lower, making a show at $1.5178 before settling back between $1.5180/95. The move lower was seen on the back of Aussie dollar’s reaction to the weaker than expected release of Chine PMI data, which in turn weighed on euro-dollar, via euro-yen, and onto cable. However, euro-sterling extending recent pullback lows to stg0.8410 diverted part of this pressure and provided cable with some added buoyancy in an otherwise quiet, holiday thinned market. UK, like most of Western Europe, remains closed for the Easter holidays with market now awaiting NY’s return for next directional impetus (US PMI and ISM data due later today). Cable demand remains in place at $1.5180/75 ($1.5178 Asia low, $1.5179 38.2% $1.5112-1.5220). A break to open a deeper move toward $1.5165/60 ahead of %1.5150. Resistance seen from $1.5205, with offers dotted to $1.5220. In euro-sterling, demand in place between stg0.8410/00, more at stg0.8395/90 with stops below. Resistance stg0.8430.
EasyForexNews Research Team