Closed in NY at $1.5675 off pullback lows of $1.5648, after rate had seen highs earlier in the day of $1.5775. Despite the pullback, which was seen led by EUR/USD sharp reversal off its post LTRO spike highs, GBP saw some buoyancy as EUR/GBP managed to extend its recent pullback below stg0.8330 and on to stg0.8302. The cross in Asia traded off those lows, contained within a relatively tight stg0.8322/275 range. Early demand for EUR’s saw EUR/USD break out of the topside of its overnight range, though cable continued to meet resistance around $1.5684 (76.4% $1.5700/1.5655), after consolidating between $1.5656/83 in Asia, allowing the cross to extend its recovery to stg0.8331, though sterling tone retains an underlying positive feel. UK Q3 GDP at 0930GMT could dent this outlook though. Markets remain thin as we approach the Christmas holidays with direction to be dictated by order and headline driven moves.
EasyForexNews Research Team