Closed in NY Wednesday at $1.5131 after rate had recovered off its traded lows of $1.5093. An early Asia dip to $1.5125 attracted fresh demand to allow this recovery to extend to a high of $1.5150 before momentum faded. Rate eased off to $1.5132 before settling between $1.5132/38 into Europe. Traders in Asia have reported subdued markets with focus already turning to the long weekend Easter holidays. Cable demand seen back in place between $1.5100/1.5090, a break to open a deeper move toward $1.5070 with stops below. Resistance $1.5150 ahead of $1.5180/85. Euro-sterling was contained within stg0.8439/52 through Asia, the extended easing in this rate providing cable with its buoyancy. No sign as yet of expected European sovereign end month demand for the cross, though with one trader noting that their end month model would favour cable demand, this could be partially offset if it emerges. UK Nationwide house prices due at 0700GMT with Index of Services then due up at 0930GMT. Direction on the day to be mainly dictated by euro-dollar moves with the reopening of banks in Cyprus of interest. Easter weekend looms with a possible readjustment of positions to be seen into the long weekend.
EasyForexNews Research Team