Closed in NY at $1.6181 after rate had seen an impressive recovery from lows of $1.6159 to $1.6215. Rate tracked the early slippage in EUR/USD, as profit take demand for Kiwi, following its recent sell off, drove the early Asian market. Rate recovered to $1.6193 before it settled between $1.6185/90. Domestic focus will be on the Halifax house price data at 0700GMT but this will be overshadowed by this afternoon’s US employment report at 1230GMT. Some optimistic comments suggest the level of employment will come in at the higher end of expectations (170k median), most seeing a release close to 100k as pushing the QE3 barometer higher. Results from UK council elections Thursday have shown opposition Labour to have claimed back recently lost councils, but not seen as a major surprise in a mid term election. French and Greek elections this weekend, with regional elections in Germany loom in the background. Cable demand seen at $1.6160/50 with stops below, a break to open a deeper move toward $1.6120/00. Resistance seen at $1.6195/05 ahead of $1.6215/20.
EasyForexNews Research Team