GBP consolidated gains and closed in NY Monday at $1.6235, the rate having eased off intraday highs of $1.6274. Sterling demand around the NY close added weight to the cross and the pair sat heavy at session lows of stg0.8105. Cable trade opened flat in Asia, before the rate slowly ground higher to $1.6270 on euro-dollar demand. The rate spiked to fresh 16 month highs of $1.6381 as news hit the wires that the US Senate and House of Representatives had approved a deal to avert going over the fiscal cliff. Cable immediately slipped back to $1.6360 and with further profit take sales eased to $1.6320 ahead of the European open. On the topside offers reported into $1.6380, a break opens tech resistance at $1.6390 (76.4% of $1.6747-1.5235), ahead of strong offers into $1.6400. Euro-sterling held firm above stg0.8100 and climbed to stg0.8152 on the fiscal cliff announcement, the rate later eased to stg0.8130. Data release light in the UK today with highlights from PMI Manufacturing for December at 0930GMT.
EasyForexNews Research Team