CABLE: Cable recovered off its early Tuesday low..
CABLE: Cable recovered off its early Tuesday low of $1.2166 to $1.2385 in early
NY, the move driven by risk appetite prompted by optimism concerning COVID-19
spread, more than countering concern over the health of UK PM Johnson. Rate
dropped back to $1.2294 ahead of the 1500GMT fix then recovered to $1.2357,
closing the day at $1.2333. Rate touched an early high of $1.2353 in early
Europe(Nyheter) before it drifted lower to $1.2310. Rate picked up fresh demand into
Europe, recovered to $1.2343 before it sank back to $1.2304 as it reacted to the
sharp drop back in EU(Nyheter)R/USD reacting to headlines that the Eurogroup is
struggling to agree a rescue deal following all night talks. An announcement was
due this morning but this has been put back to Thursday. Despite cable’s fall
some buoyancy has been provided by EUR/GBP’s react fall to Gbp0.8803.
– Light UK calendar for Wed. Focus on FOMC Minutes at 1800GMT as well updates on
PM Johnson condition and COVID-19 spread.
– Cable support $1.2300, $1.2285/80. Resistance $1.2345/55, $1.2380/85.
– MNI TECHS: Recent pullback appears corrective. Pause in the uptrend has taken
on the appearance of a bull flag, suggesting an eventual push higher likely.