The pair closed in NY Tuesday at $1.6235 after rate had been pushed up to extended highs of $1.6248 on reaction to the release of weaker than forecast US Sep NFP data. The market Tuesday looked set to take the dollar to task, with traders even suggesting that if the number came in strong they would take advantage of any dollar rally to sell back into it, the weak release providing the impetus that has seen the US unit lose ground across the board. The move up in cable lagged euro-dollar’s stronger rise and allowed euro-sterling to extend its recent recovery to stg0.8499, closing Tuesday’ssession around stg0.8488. Cable dipped to $1.6224 in early Asian trade but quickly attracted demand interest. The recovery was given an added kick higher as the Aussie was boosted by release of higher than forecast CPI data, the reaction taking cable to $1.6258 but reported offers placed to Oct1 highs of $1.6260 proved strong enough to counter further upside progress. The dollar pared losses which saw cable ease through earlier lows to $1.6217. Support seen from $1.6210 to $1.6198 (50%-61.8% $1.6161-1.6258), a break to open a deeper move toward $1.6175/70 ahead of $1.6161. Resistance $1.6260 with stops on break.
