Cable closed in NY at $1.5737, after rate had bounced off traded lows at $1.5696 to a NY recovery high of $1.5754. Rate initially dipped to $1.5725 in early Asian trade, the move influenced by the Aussie negative react to disappointing jobs data, with recovery able to edge up to retest that NY recovery high. The eventual break allowed rate to step its way to an overnight high of $1.5771, dipping to $1.5755 before early demand into Europe extended move to $1.5773. Rate again dipped back to the $1.5755/50 area before picking up fresh demand, linked to Asian sovereign cross sales, the bounce meeting resistance at $1.5780 before breaking above as the cross broke under its Asian base at stg0.8351. Cable pushed on to $1.5833, as EUR/USD moved up on Greek PSI optimism, but met major Asian sovereign supply which pressed rate back to $1.5810. The cross touched a low of stg0.8343, but strong support into stg0.8340 cushioned and allowed rate to edge back toward stg0.8360. No change expected from the BOE MPC at 1200GMT. Greek PSI overshadows.
EasyForexNews Research Team