Closed in NY Friday at $1.5336 after rate had been pushed to highs of $1.5364 on reaction to the release of weaker than forecast US jobs data, with demand for sterling-yen seen as a key upside driving force. Rate dipped to $1.5298 into opening Wellington trade, marked down in tandem with euro-dollar following weekend press reaction to the decision by the Portuguese constitutional court to reject part of the austerity plans before picking up demand that edged it back to $1.5352 before it drifted off to $1.5320 into Europe. Euro-sterling, which had seen initial react highs of stg0.8517 on release of US data, as cable lagged euro-dollar’s react, was pressed back to lows of stg0.8472 into the NY close on that sterling-yen demand. The cross edged to stg0.8478 in early Asian trade before pressing down to stg0.8464, recovering to stg0.8475 into Europe. Sterling remains firm though traders noted that decent sell interest had emerged into the extended cable rally Friday suggesting that not all are convinced in this recovery, and still look to sell back into cable strength. Cable offers remain around $1.5350, more toward Friday’s $1.5364 high. Support $1.5300-1.5290.
EasyForexNews Research Team