Opened early Europe at $1.5668 stg0.8367 GBP closed in NY at $1.5663, off extended session highs of $1.5700. Rate marked overnight lows into early Asian dealing at $1.5660 before picking up fresh demand which allowed rate to track EUR/USD early rise to $1.5684. However, sterling proved to be a laggard in comparison, with EUR/GBP able to extend its recovery off Tuesday lows of stg0.8340 to stg0.8375. Fresh demand for GBP into Europe taking cable above $1.5700, with triggered stops taking rate on to $1.5749. Move allowed euro-sterling to ease back, finding support at stg0.8345. Announcement in the ECB 3-yr LTRO, with take up on the high side of expectations, saw GBP spike to $1.5775, as it tracked euro-dollar react, only to drop back to $1.5680 as EUR/USD performed a sharp reversal off its react highs. The move in EUR/USD took the cross to extended lows of stg0.8332, which in turn provided cable with some buoyancy and allowed for a recovery above $1.5700. EUR/USD holding heavy was seen weighing ahead NY.
EasyForexNews Research Team