The pair closed Wednesday’s NY session at $1.5676 having traded Wednesday’s session with an underlying buoyant tone, with late demand allowing the rate to take out the reported barrier at $1.5700 but resistance at the 200-dma line at $1.5702 proved strong enough to counter and ease rate back from highs of $1.5701 to $1.5670 before it settled between $1.5670/85 into the Asian open. Rate retained a steady tone into early Asian trade before a sharp sell off in dollar-yen took rate up to retest the NY high (with the 200-dma coming in at this level today). Rejection saw rate ease back to the $1.5670 area before rate settled between $1.5675/90 ahead of the European open. Cable moves basically tracked euro-dollar, while the cross was confined to a stg0.8504/24 range, trading around stg0.8516 into Europe. A light domestic calendar today with attention turning to the first major set of US data this week, namely retail sales and weekly jobless claims at 1230GMT. Cable offers remain placed above $1.5700 (200-dma $1.5701) with stops $1.5710. Offers then seen into $1.5730 ahead of $1.5750/60, with the 61.8% retrace of the 2013 range of $1.6381-1.4832 coming in at $1.5789. Support $1.5670/60, $1.5645/35 stops below $1.5630.
