Cable closed in NY at $1.5919, having been pulled to a session low of $1.5905 by the deeper EUR/USD fall as markets reacted to Fed Bernanke comments countering speculation for QE3. Rate closed above its key 200-dma level at $1.5902 (today $1.5899) and was seen keeping its recent underlying buoyant tone in place. EUR/GBP reflected this buoyancy in cable through NY trade Wednesday, breaking under stg0.8400 to extend its corrective pullback off recent highs of stg0.8490 to stg0.8366. Rate consolidated this move in Asia within stg0.83675/0.8382. Cable touched an early low in Asia of $1.5914 before edging higher, the rate tracking EUR/USD and trading to an eventual recovery high of $1.5935. Rate slipped back toward opening levels ahead of the European open with macro demand for dollars taking it through the overnight base to $1.5895. Dip attracted fresh demand, and with EUR/GBP extending lows to stg0.8355, pushed rate to an eventual recovery high of $1.5957. Sterling was off highs ahead of New York but remained buoyed.
EasyForexNews Research Team