The pair closed in NY Wednesday at $1.5268, with the rate enjoying an underlying buoyant tone through the day with some linking this to UK dividend demand (more expected over the next few sessions). Despite this buoyancy rate failed to break above recent highs at $1.5288, though the underlying positive tone was supported by the higher lows seen through the day. Rate marked Asian lows in opening trade at $1.5265 before buyers emerged, the rate breaking $1.5288, then above $1.5300, before topping out at $1.5335. Press reports suggesting US Verizon has hired advisors to look at buying UK Vodafone’s 45% stake in Verizon Wireless for $100bln has also provided cable with additional lift. However, focus today will be on the first reading of UK Q1 GDP data. The official forecast is for growth of +0.1% though most market forecasters seen more pessimistic and look for between -0.1%/-0.2%, which if occurs will place market on triple dip recession watch as well as providing the recent sterling recovery with a decent counter. Cable pulled back to $1.5310 ahead of the European open, as spec longs parted back, with rate currently trading around $1.5316.
EasyForexNews Research Team