Closed in NY at $1.5230 after rate had traded with an underlying firm tone through Friday’s session as it extended its recovery to a high of $1.5248, off pre BOE Minutes lows of $1.5027 seen last Wednesday. Rate saw a sharp move higher into early Asian dealing with stops through $1.5260 targeted and triggered to take it on to a high of $1.5280. Move was seen in thin conditions with the early euro sell off (on no Cyprus agreement at the market open) dropping euro-sterling from its NY close around stg0.8530 to stg0.8491 which in turn provided a good part of the upward thrust. Euro recovery, the cross pushing back to stg0.8550/60 (stg0.8557 61.8% stg0.8602-0.8484) area, saw cable sink back to $1.5220 before it attracted fresh demand that lifted it back to $1.5260 before settling between $1.5240/50 into Europe. The announcement by Fitch late Friday that it was putting the UK on ratings watch negative appears to have had little impact, however, a move by S&P likely to be of more interest. Cable offers remain in place to $1.5280, a break to open a move toward $1.5300. Support $1.5220, more into $1.5200. For the cross, offers remain into stg0.8560,
more at stg0.8575 ahead of stg00.8600/05. Bids stg0.8500-0.8480.
EasyForexNews Research Team