Closed in NY Friday at $1.6230, trading off earlier posted highs of $1.6310 (fresh 2012 high) as rate tracked euro-dollar’s deeper corrective pullback. Rate touched an early high at $1.6251 into early Asia before risk aversion began to weigh back, based off the weak opening in Asian equity markets. Rate stepped its way to an eventual low of $1.6199 (76.4% $1.6164-1.6310) where it met decent demand which cushioned then reversed the move, allowing rate to recover, meeting resistance around the $1.6220 level. Minor offers seen to $1.6225, a break here to allow for a move on to $1.6240/50 ahead of $1.6280/85. Bids remain around the overnight low, a break to open a deeper move toward $1.6165/60, with $1.6180 to provide some interim interest. Euro-sterling trade in Asia was contained within a range of stg0.7980/95, opening Europe around stg0.7985. Nothing major on the UK data calendar for today. Traders will be aware that HSBC sets the cable exchange rate for its Oct 4 dividend payment at or around 1000GMT. End of week/month sees the fixing of the EU CAP payment to the UK.
EasyForexNews Research Team