Cable closed in NY at $1.5844, off traded lows at $1.5841. Rate nudged to an early high of $1.5862 in early Asia before turning lower, the rate dragged down by EUR/USD slippage though part of the downside pressure was diverted over to EUR/GBP which eased from an early high of stg0.82465 to stg0.8221. Cable met support ahead of $1.5820, the rate posting an overnight low at $1.5822. Recovery efforts remained shallow, with moves above $1.5830 meeting headwind supply. A fairly subdued start to European trading was enlivened as EUR/USD took out barriers at $1.3000, with heavy sales of EUR/GBP taking the cross to 19-mth lows of stg0.8210. Move allowed cable to challenge resistance at $1.5840/45 before it sank back as the cross edged above stg0.8220. Cable extended intraday lows to $1.5819, the rate continuing to meet strong demand around $1.5820 which allowed for an eventual retest of the $1.5840/45 area. The cross retained a heavy tone as the single European currency remained under pressure on Spanish debt concerns.
EasyForexNews Research Team