Closed in NY at $1.5819 after pulling back from a fix driven high of $1.5837. Early trade in Asia was restricted to a tight $1.5814/21 range, with a mid session push up to $1.5823 meeting sellers which pressed it back to retest the early lows before settling between
$1.5814/19 through to the European open. Euro-sterling pivoted around stg0.7940, held between stg0.79375-0.79435. Domestic interest provided by BOE Fisher webinar on Funding for Lending scheme at 1000GMT. Outside influence to be provided by the Merkel-Monti meeting, Germany CPI and US second reading of Q2 GDP. Cable resistance seen at Tuesday’s high at $1.5837, a break to allow rate to edge on toward $1.5850/55 ahead of $1.5870/80. Support seen back at $1.5814 (Asia low) ahead of $1.5805-1.5795, with stops placed on a break of $1.5790. Below here and $1.5774 to provide support, 76.4% $1.5754-1.5837. Stronger demand remains in place from $1.5754 through to $1.5740. Main focus remains on Friday’s Jackson Hole Symposium, the interest from this Tuesday provided by the announcement that ECB Draghi would not be attending due workload.
EasyForexNews Research Team