Closed in NY at $1.5257 after rate had been pressured lower through the NY session, breaking back under $1.5300 before finding a base at $1.5239. The recovery into the close continued in Asia, aided again by sterling-yen demand, which took rate to highs of $1.5279. Rate eased off to $1.5264 but met further demand interest into the dip which allowed it to recover to $1.5270/75 into Europe. The early recovery extension in Asia was tempered as euro-sterling extended its recovery through the NY high of stg0.8532 to stg0.8560. However, the pullback from this high provided cable with some buoyancy in its Asian after noon pullback, the cross easing back toward stg0.8540, though it was seen meeting demand in this area. As has been the recent situation, any sterling euphoria often becomes victim to poor data. Today we have IP/Mfg out at 0830GMT, alongside trade numbers. However, Monday’s sterling pullback could be seen as market positioning for such an event, therefore a surprise set of strong data could provide a bigger reaction. Support seen from $1.5255 through to $1.5240, a break to open a deeper move toward $1.5210/00. Resistance $1.5280/85, a break to open a move back toward $1.5300 ahead of $1.5320/25.
EasyForexNews Research Team