A short squeeze to $1.5826 in early European trade Thursday encountered strong supply with an equally quick move back to $1.5750. Sideways trade continued before Opec’s decision not to cut its oil production provided fresh dollar appetite with a move to $1.5716. The pair later recovered to $1.5735/40. Euro-sterling met strong supply ahead of stg0.7950 with a late move to stg0.7920. Sterling witnessed a quiet Asian session with trade tied to a narrow $1.5705-39 range as the US dollar once again provided direction. After opening at $1.5739 the pair squeezed in tandem with euro-dollar to $1.5718, before support in the dip cushioned falls. Holding around $1.5720/25 the rate soon came under fresh selling pressure on dollar-yen’s break of Y118.00 and subsequent move to Y118.38. Cable pressed to extended lows of $1.5705, before running into strong demand ahead of $1.5700. A bounce to $1.5728 triggered fresh supply to $1.5705/10 and the pair continues heavy ahead of the European open. Euro-sterling remained in consolidation mode tied to a stg0.7920-28 range
