Cable closed in NY at $1.5863, off session lows of $1.5817, as well as above its 200-dma (Wednesday $1.5857, today $1.5856). The recovery continued into Asia, the rate pushing to a session high of $1.5885 before faltering then dropping back as markets reacted to the release of weaker than expected HSBC China PMI data, which pressed rate to lows of $1.5860. Recovery through the Asian afternoon saw rate edge toward $1.5875/80 with early Europe taking the recovery on to an extended high of $1.5893. Release of weaker than expected French, then German, flash PMI data weighed on EUR/USD and dragged cable down to $1.5844, though EUR/GBP move down to stg0.8300 diverted part of this pressure. UK corp buyers off the cross lows, and position adjustment ahead of UK retail sales data, saw cable drop to $1.5812. Rate recovered to $1.5820, dropping to $1.5808 into release with disappointing data dropping it down to $1.5770. Profit take buyers emerged with recovery eventually able to edge back above $1.5800 ahead of NY.
EasyForexNews Research Team