Closed in NY at $1.5322 after rate had bounced in tandem with euro-dollar, cable off $1.5281 to a high of $1.5342, before it drifted off into the close. This recovery in cable trailed euro-dollar’s stronger move, the rate failing to break above Friday’s post NFP high of $1.5364, which in turn allowed euro-sterling to push to highs of stg0.8552, having seen lows earlier in the day of stg0.8508. Cable drifted off into the close, with the corrective pullback extending to $1.5313 in early Asia before fresh demand emerged. Sterling-yen demand was again linked to the rate’s recovery, cable pushing up to highs of $1.5340 before rally faltered and rate eased off to the $1.5320 area ahead of Europe. Support remains in place around $1.5320 (76.4% $1.5313-40), with further interest seen into $1.5313 (50% $1.5281-1.5342), stops on break of $1.5310. A move back below $1.5300 to expose stronger demand placed between $1.5280/70. Resistance remains between $1.5340/50 ahead of $1.5364, with stops now seen through $1.5365. For the cross, offers remain at stg0.8560/65, ahead of stg0.8580. Support stg0.8510/00. A light UK data calendar will have traders taking direction from yen plays, with positioning ahead of FOMC Minutes later.
EasyForexNews Research Team