Opened early Europe at $1.5681 stg0.8334 GBP closed in NY at $1.5680, having settled back around this level after recovering from session lows of $1.5649. Rate marked lows
in early Asia at $1.5671 before edging higher, the rate pushing up to $1.5700 before meeting resistance. A pullback to $1.5680 ahead of the European open was quickly reversed, as early Europe bought into the dip, taking the rate through Asian highs of $1.5703 to $1.5709 ($1.5710 76.4% $1.5729/1.5649). Rate basically tracked EUR/USD recovery, though EUR/GBP, breaking outside its overnight range of stg0.83175/0.8332 to stg0.8339, provided some counter to upside progress. Markets described as thin through Asia (Japan holiday) with Europe also seen gearing down into Christmas. Thin conditions allowed cable to get knocked lower by the release of weaker than expected services output data, taking cable from above $1.5690 to $1.5663, while the cross extended on to stg0.8345. Sterling regained poise, cable edging back to $1.5690, cross to stg0.8325 ahead of NY.
EasyForexNews Research Team