Closed in NY Wednesday at its corrective pullback lows of $1.6248 seen after rate had been rejected from $1.6307, having failed to post fresh 2012 highs above $1.6310. The move down was provided with added weight as euro-dollar also eased off highs with the recent risk on tone given a jolt as Fiscal Cliff talks in the US look to be stalling. Cable jumped up to $1.6260 into the Asian session, as euro-sterling extended its corrective pullback from Wednesday highs of stg0.8165 to stg0.8122, but the move down in euro-dollar into Asia countered and squeezed rate to session lows of $1.6238. Buyers quickly took advantage of the dip and edged it back to $1.6260, as the cross touched stg0.81155 before recovering. Recovery in euro-dollar saw cable edge on to $1.6263, but correction to stg0.8140 saw it settle between $1.6245/55 into Europe. UK retail sales at 0930GMT the domestic interest but Fiscal Cliff negotiations overshadow. End year sovereign demand, seen in recent session for euro-dollar and cable, expected to cushion pullbacks.
EasyForexNews Research Team