The pair closed Monday’s NY session at $1.5436 after it had seen a decent recovery off intraday lows of $1.5343 to $1.5465 before it drifted off into the close. Rate was driven higher as the dollar pared earlier gains as UST yields eased. Rate marked session lows at $1.5429 in opening Asian trade before rate was lifted to $1.5455 as it tracked euro-dollar, which in turn was led by post fix euro-yen demand. However, Shanghai Index slippage started to weigh back on risk and pressed cable back to retest those earlier lows where the rate again met decent support. Recovery efforts met headwind supply above $1.5440 but underlying positive tone kept rate buoyed into Europe. Euro-sterling, which had seen extended lows of stg0.8482 in NY Monday , consolidated this move between stg0.8493/0.8502 through Asia, holding just off lows into Europe. Another light data calendar in the UK with attention on equities and UST yields for direction. On this note this afternoon’s US durable goods data at 1230GMT, followed by US consumer confidence at 1400GMT will provide main focus. Cable resistance seen between $1.5455/60, a break to open a move toward $1.5470/80 ahead of $1.5495/00. Support $1.5420, $1.5405/00.
