The cross closed Tuesday in NY at $1.5240 having retreated from a NY recovery high of $1.5288 to a low of $1.5233 before edging higher into the close. Trade in NY basically tracked euro-dollar moves, with trade into Asia following the same pattern. Rate was initially squeezed to a low of $1.5227 before it eventually edged up to challenge resistance at $1.5250. Failure here prompted spec longs to trim back ahead of the European open/BOE FLS announcement, touching $1.5232 before settling around $1.5240. Most of the BOE FLS announcement confirmed what had been suggested in the UK press. Talk that market could see dividend cable demand emerge over the next four sessions (this would tend to suggest a major UK oil company). If buying does emerge expect this to provide some cable buoyancy though traders aware of Thursday’s key release of Q1 GDP with most suggesting a pessimistic outcome which should provide some counter. Offers remain in place at $1.5250, a break to open a move toward $1.5274 (76.4% $1.5288-27). Above here and that $1.5288 level becomes exposed. Offers noted from this level, strengthening toward $1.5300. Support now seen between $1.5230/20, a break to open a deeper move toward $1.5200/1.5190.
EasyForexNews Research Team