The pair closed in NY Wednesday at $1.5131 after rate had been pulled to recovery highs of $1.5159, from earlier Asian lows of $1.5075, as the rate trailed euro-dollar’s stronger rally. Euro-sterling reflected this as it edged up to NY highs of stg0.8491, though again was seen meeting decent resistance ahead of stg0.8500. Cable edged back to $1.5144 before it drifted off to retest late NY pullback lows around $1.5126. Rate then settled between $1.52130/40 ahead of the BOJ policy announcement. Dollar-yen raced higher as the details of the new BOJ policy were announced, which in turn prompted a round of general dollar demand which weighed back on cable, taking this rate to fresh overnight lows of $1.5107 (61.8% $1.5075-1.5159) into the European open. A break here to expose next support at $1.5095 (76.4%) ahead of stronger interest at $1.5075/70. Resistance remains at $1.5140/50 ahead of $1.5160. BOE MPC rate announcement due at 1100GMT with most expecting no change in rates/QE.
EasyForexNews Research Team