Closed in NY Monday at $1.6076, seen after rate had recovered off a US session low of $1.6033 to $1.6092. Rate dipped to $1.6069 in early Asia before rate recovered, in line with euro-dollar, the rate trading to $1.6094 before upside momentum faded. Rate drifted lower through the main part of the overnight session, touching an overnight low of $1.6068, edging back to $1.6084 ahead of the European open. Cable’s corrective pullback was tempered by euro-sterling easing away from its recent posted highs at stg0.8326, touching a low of stg0.8303 and holding heavy into early Europe. UK inflation data the main domestic focus at 0930GMT, with median expectation for headline CPI seen at 2.7% y/y. A release below this level would be seen opening the potential for an increase in QE, while above would support arguments for no change. Cable offers remain at $1.6095/00. Support $1.6068, stronger between $1.6050/45, with a break to open a deeper move toward $1.6035/30 ahead of $1.6015/00 (rising trendline support in focus from July and Nov 2012 in this latter area). Euro-sterling resistance stg0.8325/30 ahead of stg0.8360/65. Support stg0.8305/00, stg0.8280.
EasyForexNews Research Team