Closed in NY at $1.6202 after rate had seen extended recovery highs of $1.6217 during Monday trade, pulling back to $1.6193 before recovering into the close. Rate dipped to $1.6195 in opening Asian trade before attracting demand which lifted it to an initial high of $1.6213. A dip to $1.6203 attracted another round of demand and lifted rate on to $1.6218, surpassing Monday’s high but failed to pressure reported offers at $1.6220 and the stops above. Rate holds firm into early Europe with stops seen as a tempting target. A break here to expose next offers at $1.6240/50, with talk of barrier interest at the $1.6250 level. Support remains at $1.6195/90, a break to open a deeper move toward $1.6175/70. UK PPI and CPI data due for release at 0930GMT, along with NS house prices, and will provide the domestic interest. US fiscal cliff negotiations seen as key for general direction.
EasyForexNews Research Team