Opened in Asia at $1.5697, but had largely held up well following a sharp reversal in risk yesterday as the Greek tragedy rolls on and indecision and delays pounded the EUR/USD in NY to lows around $1.3043. Cable was cushioned by s sharp reversal in EUR/GBP as another attempt to break the 0.8400 level, instigated by a UK clearer in the 0900GMT fix yesterday fell flat, and the cross plunged from stg0.8402 through strong support at stg0.8330 to stg0.8316 in NY. Asia this morning has seen further pressure on the cross slipping to stg0.8304 but the overall risk aversion has also led cable lower to $1.5662 in recent trade following Moody’s announcement that it was reviewing 17 global banks and institutions for possible downgrades. Overnight, UK Nationwide Jan consumer confidence rose to 47 from 38 in December, but the data was still seen weak with little improvement in the spending index. Cable offers sit at $1.5700/10 with bids at $1.5655/65 and $1.5645/50. EUR/GBP trend line support is seen at stg0.8280 with a break there pointing to Feb 6 lows of stg0.8260.
EasyForexNews Research Team