The cross closed in NY Monday at $1.5286, just off late recovery highs of $1.5296, after rate had extended its recovery off earlier Asian lows at $1.5202. Rate managed to extend its upside correction to $1.5298 before momentum faltered and rate eased back to opening levels. Release of softer than forecast China PMI data, the new orders sub index moving back below 50, provided a knock back to risk with demand for yen influencing cable lower, via sterling-yen, the rate touching an overnight low at $1.5255 before meeting decent demand. Rate edged to $1.5269 before turning lower again, trading around $1.5257 ahead of the European open. Bids seen placed into $1.5250 (50% $1.5202-98), a break to open a deeper move toward $1.5225/20, with stronger interest remaining in place on approach to $1.5200. Resistance remains on approach to $1.5300. Euro-sterling held by stg0.8536-47 through Asia allowed cable to track euro-dollar moves. UK public finances data, followed by CBI, to provide domestic interest, though moves on the day expected to be dictated by yen moves along with EZ PMI data. UK focus remains on Thursday’s first reading of Q1 GDP data.
EasyForexNews Research Team