Closed Monday’s session at $1.5325, having traded through a US holiday session within a range of $1.5284/1.5330. Rate initially dipped back to $1.5312 into Asia as rate took early direction from EUR/USD, reacting to the downgrading of EFSF by S&P. The early easing was quickly reversed on the release of better than expected Chinese GDP data, with EUR/USD leading the recovery and taking rate to a high of $1.5371. EUR/GBP pushed up from stg0.8262 to stg0.8292 which provided a counter to GBP upside progress, though this rate was holding firm into Europe, able to extend the recovery to $1.5376 into Europe. UK inflation data at 0930GMT the early domestic highlight, with BOE King at the TSC giving evidence on the Financial Stability Report at 1000GMT. Markets retain a risk on tone into Europe, following on from the China release, cable holding around $1.5370, while EUR/GBP holds back at stg0.8282. GBP resistance seen at $1.5375/80, more between $1.5410/15. Support seen at $1.5330/25 ahead of overnight low at $1.5312. For EUR/GBP, offers stg0.8290/00, stg0.8315/20. Bids stg0.8255/50.
EasyForexNews Research Team