Closed in NY at $1.5540, off session lows of $1.5531 after rate lost further ground following the FOMC announcement. Lack of new measures disappointed those expecting something more dovish and caused a spike higher in the dollar. Rate extended its recovery into early Asia, the move tracking EUR/USD early lift but move met decent resistance into $1.5550 which capped. Macro sales of cable along with ongoing demand for EUR/GBP weighed on the pound taking cable to extended lows of $1.5523. Rate recovered through the Asian afternoon, settling between $1.5535/45 into Europe. Bids remain in place between $1.5525/20, a break to open a deeper move toward $1.5500 ahead of $1.5480 and stronger support between $1.5460/50. Resistance remains at $1.5550, a break above to allow for a move on toward $1.5580. EUR/GBP saw extended highs Wednesday of stg0.7894, the rate consolidating its recent recovery between stg0.7868/83 through Asia. UK construction PMI at 0830GMT, but main focus on ECB policy decision at 1145GMT, with no change in policy expected at today’s BOE announcement.
EasyForexNews Research Team