Cable slipped to $1.6017 after the Fed’s announcement to leave rates and policies unchanged, the rate later bounced to close around
$1.6040 as risk appetite increased. Euro-sterling continued heavy in NY and closed at stg0.8085, the rate recovered from a pullback low of stg0.8077 after earlier posting a high of stg0.8148. Cable squeezed lower around the Asian open to $1.6028, before the rate bounced in tandem with euro-dollar to $1.6045. The pair sat in a tight 10 pip range for the remainder of the session, before late demand boosted through resistance to $1.6051 ahead of Europe. Tech resistance seen at $1.6064 (23.6% of $1.5269-1.6309), behind here and stops noted on a break of $1.6075. Euro-sterling was tied to a narrow stg0.8085-0.8095 Asian range with very little action to inspire the pair. Traders look ahead to release of UK GDP data at 0830 GMT. PM Cameron hinted of strong numbers in yesterday’s PMQ’s and it’s widely expected to show the economy coming out of recession.
EasyForexNews Research Team