Closed in NY at $1.5872 after rate had eased off session highs of $1.5910, seen after a stronger than expected early release of UK services PMI data (was due to be released this morning). Rate tracked the early euro-dollar sell off into Asian dealing, cable dropping to lows of $1.5856 before recovering, meeting resistance back above $1.5870. Rate settled between $1.5858/68 through the Asian afternoon, trading around $1.5860 into Europe. A very light UK data calendar due to that early release in UK PMI data with moves to come from Eurozone data, services and composite data due from 0743GMT ahead of Eurozone retail sales at 0900GMT. Main focus remains on Thursday’s ECB meeting and press conference (especially plans for bond buying) and Friday’s US NFP. Headlines ahead will provide directional impetus. Rate seen under pressure into early Europe, with euro-dollar again providing the lead as euro-sterling pivots stg0.7900. Cable bids seen placed into $1.5850, a break to open a deeper move toward $1.5830. Resistance back in place between $1.5900/10.
EasyForexNews Research Team