Closed in NY at $1.6132 after pulling back from a session recovery high of $1.6188 as risk appetite was bruised by Spain PM Rajoy comments that Spain asking for aid was not imminent. Cable touched an early high of $1.6134 into Asian trade before turning lower, taking direction from a negative react in Aussie to release of weak domestic data and softer than forecast China non-mfg numbers. The risk related sales pressed rate to $1.6121 before rate met decent demand into the dip, the buying taking the rate to an overnight high of $1.6140 before it settled back between $1.6125/30 through Asian afternoon trade and into Europe. Euro-sterling consolidated Tuesday’s rally to stg0.8018, with trade contained within a stg0.79965-0.8007 as it pivoted stg0.8000. UK services PMI due at 0828GMT will provide the morning’s domestic interest, with Eurozone services and EMU retail sales also of interest. US ADP and non-mfg ISM ahead of Friday jobs report will also be of interest. Cable bids $1.6110/00 ahead of $1.6085/80. Resistance $1.6170/75 ahead of $1.6190/00.
EasyForexNews Research Team