The pair closed in NY Thursday at $1.5007 after rate had been pressed to extended lows of $1.4983 late in the NY session on strong dollar demand seen vs major currencies. Rate had seen a high of $1.5213 into the NY day, ahead of the ECB announcement of its QE programme, with the euro solld off aggressively and cable seen as a reluctant follower, with a sharp move lower in euro-sterling to stg0.7554 providing some counter. Cable’s recovery into the close continued into Asia as rate edged on to $1.5027. However, momentum soon faded and it drifted off, finding support ahead of $1.5000. Recovery to $1.5024 proved short lived as fresh sellers emerged ahead of Europe taking cable down to $1.4981. Recovery efforts so far capped at $1.5000. Euro-sterling again provided some buoyancy as this rate was pressed back from early Asia highs of stg0.7577 to stg0.7552 into Europe (NY low stg0.7554). Fall out from Thursday’s ECB announced action to continue providing main direction. UK retail sales provides the morning’s domestic data interest. Cable support $1.4980/70 ahead of $1.4950/40. Resistance $1.5027 ahead of $1.5050/60.
