The pair closed in NY Tuesday at $1.5535 after rate had been pulled to extended highs of $1.5570 on euro-dollar’s stronger recovery, while euro-sterling diverted some of this upside pressure as it edged to day’s highs of stg0.8485. Cable was pressed back to $1.5524 around the London end month fix (euro-sterling eased back to stg0.8460 before edging back around stg0.8475) before it settled between $1.5530/40 into the close. Cable touched an early low of $1.5528 in a holiday thinned Asian session before it edged up to $1.5547 (50% $1.5570-24). Rate drifted back, settling back between $1.5530/40 into Europe. Euro-sterling consolidated between stg0.8470/80 through Asia. UK Nationwide house price data due up at 0600GMT, though more interest seen on the PMI mfg data at 0828GMT (seen forward looking and market will look to see if it supports last week’s stronger than forecast Q1 GDP release. Construction and services PMI’s are due for release Thursday-Friday respectively). Offers remain into $1.5550, a break to expose Tuesday’s high at $1.5570, with further offers seen placed between $1.5575/85. A break here to open a move toward $1.5600/10 (cpvers $1.5607 50% of 2013 range $1.6381-1.4832) ahead of $1.5630. Support $1.5525/20.
EasyForexNews Research Team