Closed in NY at $1.6130 after rate had eased off session highs of $1.6139 to $1.6126 into the close. Rate had seen a strong recovery rally through the day, the move up aided by the increase in SNB sterling holdings in their published reserves. Cable retained buoyancy as euro-sterling was pressured away from earlier highs of stg0.8075 to stg0.8030 as end month euro sales outpaced sterling sales. Cable dipped to $1.6125 in early Asia before attracting stronger demand interest, the rate edging to a session high of $1.6134 before settling in a tighter range around $1.6130 through the main part of the overnight session. Euro-sterling edged back to stg0.8040 in Asia before settling around stg0.8035 into Europe. Cable retains this underlying buoyant tone as we head into the European open but this could find some counter from residual euro-sterling end month demand. Nationwide data due at 0700GMT provides initial interest ahead of UK mfg PMI at 0928GMT. Cable offers remain from $1.6135 through to $1.6150, a break to open a move toward $1.6180. Support $1.6095/80 with stops below.
EasyForexNews Research Team