Opened early Europe at $1.5522 stg0.8382 – GBP/USD closed in NY at $1.5499, after correcting back from NY highs of $1.5545 to $1.5492. The recovery continued into Asia with rate edging from its early session lows of $1.5495 to an initial high of $1.5520. Early pullback was contained above $1.5500 before rate bounced to session highs of $1.5534 ahead of the European open. EUR/GBP was contained within a tight stg0.8379/0.83865 range through Asia, leaving cable to track the fortunes of EUR/USD. GBP/USD enjoyed early demand into Europe from middle eastern names, the rate clearing above $1.5534 and moved on to $1.5545/50 as the cross broke below stg0.8373 to post fresh 10-month lows. GBP/USD continued to drive higher, meeting next resistance at $1.5585 while the cross extended lows to stg0.8355. Euro-dollar breaking above $1.3017/22 provided an added boost, taking GBP/USD through $1.5590/05 and on to $1.5649 before momentum faded. Rate pulled back to $1.5625, retaining an underlying firm tone into CBI data. Strong data had little added effect.
EasyForexNews Research Team