Closed in NY at $1.5990 having recovered off a session low of $1.5954, seen after the rate had been pulled off post Obama election react highs of $1.6043 by stronger euro-dollar slippage, with euro-sterling diverting part of this pressure as it eased to a session low of stg0.7971. Cable saw an early high of $1.5993 into Asian trade, as risk was given a brief boost on the Greek govt passing the latest austerity package. Sellers quickly emerged to press cable lower, as it tracked euro-dollar’s correction lower, the rate finding support at
$1.5970 ($1.5966 76.4% $1.5955-1.6004) before rate settled between $1.5970/80 through the Asian afternoon and ahead of the European open. Euro-sterling traded between stg0.79785-0.7993. UK CML third quarter Buy to Let/Repossessions data and October Vehicle Licensing Statistics provide an early interest but BOE MPC rate/QE decision at 1200GMT is key. Most expect no change in either, recent GDP data has forecasters pulling back from their QE extension call, though if they do extend will be seen as sterling negative. ECB rate decision follows at 1245GMT.
EasyForexNews Research Team