The pair closed in NY at $1.5231 after rate’s corrective pullback off earlier highs of $1.5368 was given added weight through the London fix, with Fitch providing a further shove as it downgraded the UK’s rating to AA+ from AAA (a move widely expected though still prompted a negative response). Rate was marked higher into early Wellington trade, the rate tracking euro-dollar’s higher mark up, but the move quickly attracted sellers which eased the rate back toward the NY close into main Asia open. Selling continued, the rate eventually touching a low of $1.5202 before buyers emerged ahead of the figure which took it back up to $1.5246. Rate slowly eased off this recovery high, settling around $1.5230 ahead of the European open. Euro-sterling, after seeing lows Friday of stg0.8503 the rate was pushed back up to stg0.8582 on the mentioned late sterling weakness/Fitch reaction, with trade through Asia consolidating this recovery between stg0.8578/92, resting on the lows into Europe. Focus this week will be on Thursday’s Q1 GDP first reading with pessimism already noted for a potential negative read. Cable support remains into $1.5200, stops sub $1.5195 with further demand noted between $1.5180/70. Resistance $1.5250/60.
EasyForexNews Research Team