Closed in NY at $1.6024 after recovering off a late dip low of $1.6010. Cable had been pressed lower in NY on the back of euro-dollar slippage, though reports of Dutch PB sales of euro-sterling (this rate pressing down to stg0.8060) had provided some buoyancy in the move lower. Cable touched a high of $1.6025 into opening Asian trade before it began to move lower, the pressure seen from euro-yen sales, which led to pressure on euro-dollar and on to cable as the cross consolidated within a tight stg0.8074/80. Cable squeezed to an initial low of $1.6009 with recovery efforts from this area capped ahead of $1.6020 before it pressed down to $1.5995 ahead of the European open. Rate trades back around $1.6000 at posting, after rate failed to trigger reported stops in the $1.5995/90 area. A break of $1.5990 to open a deeper move toward $1.5980 ahead of $1.5960/50. Resistance remains at $1.6020/25, more at $1.6042 (76.4% $1.6056-1.5995) ahead of stronger interest into $1.6060. A light domestic calendar seen leaving cable to take direction from euro-dollar moves.
EasyForexNews Research Team