Closed in NY Thursday at $1.5493 having recovered from a NY afternoon drop to $1.5475, the move seen taking out option barrier interest at $1.5485, as well as flushing out stops sub $1.5480 in a thin market. Rate eased to $1.5484 in early Asia before picking up fresh demand, the rate edging to $1.5521 before momentum faded. Rate then drifted off through the Asian afternoon, meeting some demand interest ahead of $1.5500, the rate currently trading around $1.5510 ahead of Europe. Euro-sterling, which had managed to extend its corrective pullback off Wednesday highs of stg0.8685 to stg0.8585 Thursday, recovered to stg0.8628 into the NY close, with trade in Asia able to press the rate down to stg0.86025 before recovering around stg0.8610 ahead of Europe. Sterling remains on the back foot, with main weakness seen vs the dollar, while its pullback versus the euro seen providing some buoyancy. Cable demand remains in place into $1.5475, with stops now seen on a break of $1.5470. A break here to expose $1.5460/50. Resistance remains at $1.5520/35, more toward $1.5550. UK retail sales at 0930GMT to provide the morning interest, the result of which to set the tone for sterling for the balance of the day.
EasyForexNews Research Team