Closed in NY at $1.6152 after the post FOMC rally took rate to $1.6174 and then pulling back to $1.6138. Rate eased off to $1.6145 in early Asia before fresh demand emerged as equity markets opened on a positive note, which in turn boosted general risk appetite. Cable met initial resistance between $1.6150/60 before breaking extending on to $1.6186 on an Aussie led risk-on surge. A brief dip to $1.6176 attracted fresh demand that drove rate to eventual session highs of $1.6206 ahead of the European open, with rate retaining a buoyant tone into the open. Rate currently trades around $1.6195. The cable recovery continued to lag behind euro-dollar, which allowed euro-sterling to extend its own recovery to stg0.80475 (NY high stg0.8044). Cross offers seen into stg0.8050. Cable offers seen into $1.6215/20 with stops above, which if triggered exposes $1.6250. Support seen at $1.6180/70 ahead of $1.6150. A light domestic calendar today with attention to be focused on further reaction to Thursday’s FOMC QE3 announcement. Eurogroup meeting comments
and US CPI and retail sales to provide intraday interest.
EasyForexNews Research Team