Closed in NY Wednesday at $1.6141, having pulled back from session highs at $1.6171 and was seen recovering off pullback lows of $1.6109 into the close (rate closed Dec24 at $1.6121 after recovering off a low in that session of $1.6101). Rate continued its recovery into early Asia, edging to $1.6140 (50% $1.6171-09) before easing back and finding a base at $1.6125. Cable settled between $1.6130/40 for most of the overnight session, dipping to $1.6127 ahead of the European open before edging back to $1.6133 into London’s return. A softer yen seen as the main driver of direction over the last few days, with the euro the main beneficiary. Cable continues to struggle to take full advantage of the situation and has thus allowed euro-sterling to extend its recent recovery to stg0.8209 (Weds), touching stg0.8204 in early Asia but has since eased off to stg0.8195 into Europe. Offers in the cross now seen placed between stg0.8210/20. Support stg0.8185/80. A light domestic calendar with moves expected from yen activity as well as US ‘Fiscal Cliff’ developments.
EasyForexNews Research Team