Closed in NY at $1.6052 after rate had been pressed lower by deeper euro-dollar slippage, the rate seeing lows in NY at $1.6040, though euro-sterling breaking under support at stg0.8080 to extend its corrective pullback to a NY low at stg0.8066 diverted a good part of the pressure. Cable came under fresh pressure in early Asia with market probing for stops sub $1.6040, getting the rate to a low of $1.6035 before demand emerged to take rate up to $1.6057 before it settled between $1.6050/55 in a typical subdued pre US jobs data market. Euro-sterling consolidated its move lower, with trade overnight contained by stg0.8070/81, pressing on the base into Europe. Cable demand remains into $1.6040, a break to open a deeper move toward $1.6025/15 ahead of $1.6000 and $1.5980. Resistance $1.6060 ahead of $1.6075/85. UK IP/Mfg data due for release at 0930GMT, some suggestions this data could show some improvement but US data overshadows. Euro-sterling support seen at stg0.8060/50 with stops below. Resistance stg0.8080/85, stg0.8100.
EasyForexNews Research Team