Closed in NY at $1.5762 after rate had extended its recovery off Monday’s extended lows of $1.5683, seen into opening week trade in Asia. The rate had seen the main downside drive Friday as euro-sterling had been driven to highs of stg0.8711, with the corrective pullback in the cross through Monday driven by a general paring of long euro positions on Eurozone political concerns, the cross trading down to stg0.8569 which in turn allowed cable to push up to $1.5772 ahead of Monday’s close. The recovery in sterling was aided by reported middle eastern sovereign wealth fund buys during Monday’s European morning, with squeezed spec shorts then adding to the upside momentum. Euro-sterling continued to take direction from euro-dollar in Asia, extending lows to stg0.8555, the move again providing buoyancy for cable as it countered the negative effect from euro-dollar’s continued slide. Cable was held between $1.5745/67 in Asia. UK services PMI due at 0928GMT to provide the main domestic interest, though moves to continue to take direction from euro activity. Cable support seen at $1.5745 ahead of $1.5725/20 and into $1.5700/1.5680. Resistance $1.5770/80, $1.5800/10. Euro-sterling demand into stg0.8550, resistance stg0.8580 ahead of stg0.8600.
EasyForexNews Research Team