Closed in NY Tuesday at $1.5104 after the rate had come under pressure through the NY session, breaking support in the $1.5170/80 area before posting lows at $1.5099. Rate consolidated Tuesday’s losses between $1.5104/10 through the Asian morning before rate came under another round of sell pressure which extended lows to $1.5075 before it settled between $1.5077/87 ahead of the European open. Euro-sterling, which had eventually broken resistance at stg0.8475/85 Tuesday posted highs in NY at stg0.8494, with rate consolidating this recovery between stg0.84835-0.8492, leaving cable to track euro-dollar moves. Cable bids seen into $1.5070, with talk of decent sized stops below. A break to open a deeper move toward $1.5050/40 ahead of $1.5027 (Mar20 low). Resistance remains at $1.5110, a break to open a move back toward $1.5125/35 ahead of $1.5150. Euro-sterling offers seen into stg0.8500, support stg0.8475/70. Focus today will be on release of UK construction PMI data at 0830GMT, with forecasts suggesting an improvement toward 48.0 from 46.8 last. BOE Credit Conditions Survey follows at 0930GMT.
EasyForexNews Research Team