Closed in NY at $1.5251, after rate had performed a decent recovery from earlier Asian lows of $1.5130, the rate touching a recovery high of $1.5274 in NY before drifting off into the close. Rate edged to $1.5263 in early Asia before dropping back to mark overnight lows $1.5243 before picking up fresh demand that took it on to extended highs of $1.5268. A dip to $1.5245 met stronger demand, which allowed rate to edge back to $1.5265 before strong buying emerged that spiked rate through $1.5274 and on to $1.5330, with traders noting that stops fired off between $1.5280/1.5300, the added demand in thin conditions allowing the extended move. Rate initially held gains between $1.5300/30 before drifting off to $1.5285 ahead of the European open. This move up in cable however seems to have unimpressed the dealer community as early reports suggest they still look for levels to short, though most leaving tight stops now above $1.5330. Germany Ifo at 0900GMT and ECB LTRO2 payback at 1100GMT to provide an outside influence (no UK data of note), with sterling moves in recent sessions driven by euro-sterling as this pair corrected off recent highs at stg0.8764 to NY lows of stg0.8630. Rate currently trades around stg0.8642.
EasyForexNews Research Team