Closed in NY at $1.5038 after rate had managed to recover of session lows of $1.4985 to $1.5044 before drifting off into the close. Sterling was seen under pressure Friday following the release of weak manufacturing PMI data. This will turn attention onto services PMI data Tuesday, a weak reading here expected to put the market on a QE extension footing. BOE rate decision due this week (Thursday), but despite the recent 6-3 split at the last meeting to keep QE unchanged, most expect rates and QE to again hold steady (despite BOE King’s vote for stg25bln extension last meeting). Trade through Asia was confined to a tight $1.5024/47 range, trading around $1.5034 into Europe. Offers remain in place toward $1.5050, a break to open a move toward $1.5080 ahead of $1.5100. Support now seen at $1.5000, a break to expose Friday’s low at $1.4985, with bids now seen placed between $1.4985/80. Below here and rate can ease toward $1.4965/60 then $1.4950. Euro-sterling held within a range of stg0.8645/65 through Asia, as it consolidated Friday’s volatile session which had seen it spike to stg0.8686 before dropping back to stg0.8636 with a weak pound countered in this rate by Eurozone concerns.
EasyForexNews Research Team