Closed in NY at $1.5965 and initially squeezed down to mark session lows at $1.5952

<p>GBP/USD Range: 1.5982 – 1.6034 Support: 1.5665 Resistance: 1.6075 Closed in NY at $1.5965 and initially squeezed down to mark session lows at $1.5952 before picking […]</p>



Range: 1.5982 – 1.6034
Support: 1.5665
Resistance: 1.6075
Closed in NY at $1.5965 and initially squeezed down to mark session lows at $1.5952 before picking up fresh demand interest. Risk appetite was to the fore in Asian trade, to the general detriment of the US dollar, which allowed cable to push back above $1.6000. Rate met headwind offers on approach to $1.6020, Rate has remained buoyed above $1.6000 into European dealing, but upside gains remain sticky, though with euro-sterling pushing up against its resistance at stg0.8415/20 offers some hope for further gains. Cable had seen highs Tuesday of $1.6060, a recovery in NY touching $1.6040. Offers seen at both levels, a break to expose $1.6075 (76.4% $1.6300/1.5345). Long-dated gilt auction at 1030GMT this morning’s focus.




Range:1.3367- 1.3508
Support: 1.3350
Resistance: 1.3520
General risk appetite was given a boost by leaked Chinese data and led to renewed demand which targeted a reported barrier at $1.3475. Rate pushed to $1.3485 ahead of the European open, with added demand into this session extending the move to $1.3488. Market appears to have its sights set on the $1.3500 level, which is said to hold barrier interest, with talk in Asia suggesting size of stops above around 300mln. Should the rate break above expect profit take selling to counter initial stop buys, though if rate can build expected to take rate up to $1.3520/25. Traders suggesting that the area between $1.3520/70 offers good sell entry points. Support seen back at $1.3460 ahead of $1.3445/35, with stops placed on a break of $1.3430. German Shatz and Portugal T-bill auction this morning’s focus.




Range: 82.13 – 82.69
Support: 82.00
Resistance: 82.80
Asia opened Y82.55/Y110.52 and ranged Y82.12-69/Y110.34-94.With risk returning to the tables and concerns that China wishes to increases its reserves in Euro and Yen, the dollar slipped sharply after the Tokyo fix from early highs of Y82.69, through support at Y82.30 and tripping some major stops to a low of Y82.12. Talk yesterday of solid bids just below Y82.00 ahead of stops through Y81.88 looking likely to be tested, but there is also some demand ahead of Y82.00. Euro-yen held up after an initial fall to Y110.34 from Y110.75 as the dollar-yen was sold off, recovering later with a buoyant euro-dollar to Y110.94.

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