Cable closed in NY Thursday at $1.5279 after rate had been pressured to session highs of $1.5312, bouncing back from its post UK retail sales data react lows of $1.5218, with rate seen meeting plenty of willing spec sellers above $1.5300. The corrective pullback was also aided by reaction to late negativity on Wall Street, which prompted some paring back of risk positions, along with comments from BOE Weale suggesting the UK economy may have contracted in Q1 and that the improving inflation outlook may provide room to manoeuvre on policy. Rate initially edged back to $1.5291 in early Asian dealing, dropped back to $1.5273 before picking up stronger demand that edged rate back toward $1.5300, meeting resistance ahead of the figure that capped the move at $1.5298. However, rate was seen retaining its underlying buoyant tone ahead of the European open, remaining above $1.5290. Euro-sterling closed in NY at stg0.8542, after this rate had pulled back from post UK data highs of stg0.8574 to stg0.8530, meeting resistance at stg0.8560 before settling between stg0.8540/45 into the close. Trade through Asia was contained by stg0.85365/0.85485. Cable offers $1.5300, $1.5310/20, $1.5350. Bids $1.5275/70.
EasyForexNews Research Team