Cable tracked euro-dollar slippage in the US afternoon to print lows of $1.6225, the rate later recovered to close at $1.6254. Euro-sterling eased to stg0.8106 but found support ahead of strong bids into stg0.8100 and closed around stg0.8113. Asian trade opened flat and the upward momentum seen in yesterday’s session stalled despite the strong close in Wall Street. Cable was tied to a narrow 20 pip range, before a number of euro-dollar stop losses triggered by euro-yen supply added weight. The pair slipped to lows of $1.6202, found support in the dip and later bounced to settle around $1.6225. A break on the downside opens further reported bids at $1.6180, ahead of 1.6166 (21-day ma). Euro-sterling opened heavy and as risk appetite faltered slipped through stg0.8100, flushing stops on the move to lows of stg0.8094. Bids seen on the downside into stg0.8090 with more stops set on a break, through here opens techs at stg0.8086 (21-day ma), ahead of stg0.8062 (12 Dec low). Data release light in the UK with highlights from PMI Construction at 0930GMT.
EasyForexNews Research Team