Chart: WorldWideMarket Alpha Trader
Cable traded in a relatively narrow range of 55 pips in Europe with the high being the intraday resistance at 1.6370 and dipping to the 1.6315 low. The initial round of selling of the pound stemmed from the post effects of a lower than expected U.K. house prices data that declined to 56 in December from 58 in November reported by the Royal Institution of Chartered Surveyors which fueled speculation that the U.K. economic recovery may be losing momentum. The dollar is firm supported by the sentiment based on the Federal Reserve Bank Beige Book published late yesterday suggesting that the U.S. economy continued to grow at a moderate pace from late November to the end of 2013 with regions of the country expected to pick-up growth.
The pound’s ensuing recovery to 1.6357 was influenced by talks of a merger and acquisition deal related demand in the work-in-process of the $130 billion Vodafone/Verizon deal. Euro-sterling traded in a 25 pip range 0.8342-0.8317 with noted offers at 0.8350.
Near Term Support: 1.6315, 1.6280, 1.6240, 1.6230
Near Term Resistance: 1.6370, 1.6380, 1.6404, 1.6428
Chart: WorldWideMarkets Alpha Trader