Cable closed in NY Friday at $1.5836, having been pressured to an extended recovery high of $1.5862 on a general dollar sell off following release of weaker than expected US data. Rate eased into Asian trading, marking session lows at $1.5829 before recovering in a lightly traded session to a high of $1.5850. Rate opened Europe pressing up against that high, extending the topside to $1.5851 before reversing as strong USD/JPY sales influenced markets. Rate was pressed below the overnight base to $1.5823 before meeting demand placed toward $1.5820. Recovery faltered at $1.5844 (76.4% $1.5850/23), dipped to $1.5830 before edging up to $1.5847 late morning. Offers placed between $1.5850/53 provide a barrier ahead of a retest of Friday’s high at $1.5862. Support remains at $1.5825/20. Trade generally was reported as fairly subdued, with main interest seen on yen activity. UK inflation data Tuesday ahead of BOE Minutes and Osborne’s Budget Wednesday the main points of domestic interest this week and awaited for direction.
EasyForexNews Research Team