Closed in NY Friday at $1.6010, the rate having been pressured to a high in this session of $1.6034 as the dollar was sold across the board following the release of weaker than forecast US NFP data (increasing speculation that this week’s FOMC may favour QE3). Rate edged to an early high in Asia at $1.6020 before turning lower, the move down influenced by euro-dollar’s break back under $1.28, the rate trading to a low of $1.5990 before settling between $1.5991/96 ahead of the European open. Euro-sterling, which had seen recovery highs of stg0.8004 Friday, after taking out a barrier at stg0.8000, was contained through Asia between stg0.7988/98. A light domestic data calendar today though more interest seen on developments in Europe and the US this week, German Constitutional Court decision on ESM Wednesday, US FOMC announcement Thursday. Direction to be dictated by headline comment. Cable bids placed at $1.5990, a break opens $1.5978 (50% $1.5923-1.6034) ahead of $1.5950 (76.4%). Resistance remains at $1.6034, a break to open a move toward $1.5958 76.4% $1.6302-1.5269.
EasyForexNews Research Team