Closed in NY Monday at $1.5230 after rate had seen extended recovery highs of $1.5242 as it was pulled higher by euro-dollar as it reacted to the release of weaker than expected US ISM data. Rate continued its corrective pullback into early Asia, the rate touching a low of $1.5218 before picking up fresh demand, the buying able to lift the rate through reported resistance between $1.5240/50 and on to $1.5259 as another round of strong dollar-yen sales prompted general dollar sales. Rate eased off highs to $1.5235, holding between $1.5235/40 into Europe. Cable moves were generally influenced by euro-dollar as euro-sterling was contained by stg0.8437/47. The BCC quarterly economic survey released overnight showed modest growth in Q1, reinforcing their assessment that the recent NS GDP overstated the weakness in the UK economy. However, release today of UK mfg PMI data at 0828GMT will provide the key domestic data on the day with most expecting a pessimistic reading. UK borrowing data also due at 0830GMT. Cable offers seen into $1.5280, a break to open a move toward $1.5300. Support $1.5235/30 ahead of the Asian low of $1.5219 then $1.5205/00 and recent lows of $1.5187-78.
EasyForexNews Research Team