Closed in NY at $1.6016 after recovering in tandem with euro-dollar from lows of $1.5962. Risk gained a late boost in NY from perceived positive signals concerning a compromise on the US Fiscal Cliff, as well as an upbeat Beige Book. Cable touched $1.6020 (61.8% $1.6056-1.5962) into early Asia before drifting off to $1.6010. Fresh demand emerged to allow rate to retest the early high before it settled around $1.6015 into Europe. Euro-sterling was contained by stg0.80815-0.8091 through Asia. UK money supply data at 0930GMT ahead of CBI sales numbers at 1100GMT provide the morning interest. Sterling currently seen in balance with risk tone supporting but facing headwinds from possible downgrading with attention being turned toward the Dec5 Budget Statement. Direction today expected to again be dictated by euro-dollar moves. Cable offers $1.6020, more at $1.6034 (76.4%) ahead of stronger interest between $1.6055/60. Stops noted above, which if triggered exposes $1.6080 and $1.6100. Support $1.6010 ahead of $1.6000 and $1.5975/70. Strong bids remain at $1.5960/55, stops below.
EasyForexNews Research Team