Closed in NY Friday $1.5473 after rate had failed to take out barrier interest at $1.5500 on two attempts, easing off session highs of $1.5499, though underlying tone into the close remained buoyant. The pound continued to feel the positive effects from Thursday’s release of stronger than forecast Q1 GDP, and with dividend related demand (oil company interest rolls over into today along side HSBC dividend demand at around 1000GMT) expected to support this underlying positive tone, with the large Verizon-Vodafone buy out bubbling away in the background. Rate edged higher into early Asia and had an early look at the $1.5500 level, backed away to $1.5478 before stronger demand emerged to take rate on to $1.5525, extending to an eventual high of $1.5527 before momentum faded. Rate settled around $21.5520 ahead of the European open. Focus this week will be on UK PMI’s (Wed-Thu-Fri) to see if this more forward looking data supports last Thursday’s GDP data and this trend can be sustained. Cable offers seen into $1.5530, a break to open a move on toward $1.5550 ahead of $1.5570/80 ($1.5574 100-dma), though some already suggesting room for for a move on to $1.5610. Support $1.5475/70 ahead of $1.5450 and $1.5420.
EasyForexNews Research Team