Closed in NY at $1.5715 with rate squeezed to an early low into Asia trade of $1.5695 as rate was influenced by the EUR/USD move lower, in turn led by EUR/JPY sales. Cable recovered, in line with EUR/USD, to $1.5724 before upside momentum faded. Rate dipped to $1.5707 before retesting highs ahead of the European open. Fresh sales into Europe pressed rate back to $1.5705, but move again seen meeting decent demand interest ahead of $1.5700. Demand remains in place between $1.5700/1.5695, a break to open a deeper move toward $1.5688 (recovery stall Thursday) with stronger interest seen placed at $1.5675/70. A break here to open a deeper move toward $1.5662 (76.4% $1.5639/1.5737 NY recovery range). Resistance seen at $1.5725/30, ahead of the NY high at $1.5737, with stronger interest noted into $1.5745/50 ($1.5745-49 recent highs). Light data calendar this morning in Europe with focus turning to this afternoon’s release of US CPI data at 1330GMT, IP/Cap.Ut at 1315GMT ahead of Michigan sentiment at 1355GMT. US yields remain a key driver in a mainly subdued market.
EasyForexNews Research Team