Strong dollar demand pressured cable to European session lows of $1.5628 on Monday, before a short squeeze saw recoveries extend to $1.5694 in early NY. The rate moved in tandem with euro-dollar to make a show above $1.5700 and on to extended highs of $1.5714, before euro-sterling’s slow grind to stg0.7924 countered the move. Unable to consolidate above $1.5700 in early Asian trade, sharp sterling-yen slippage after release of BOJ minutes from the 31 October meeting added weight. Comments from BOJ Kuroda that there was a high chance of CPI rising to 2% prompted a wave of selling pressure that took stg-yen from Y186.08 to Y184.86, cable tracked the move to $1.5685. Dip demand briefly cushioned before the rate encountered strong supply ahead of $1.5700 with a deeper reversal to $1.5672. Euro-sterling saw trade tied to a narrow 0.7917-27 range, the cross ran into profit take sales off the highs which allowed a late recovery in cable to $1.5685/90. Tech resistance is seen at $1.5712/14 (76.4% of $1.5738-1.5626, 21 Nov high), a break opens $1.5738 (20 Nov high), ahead of offers on approach to $1.5745/50.
