Opened early Europe at $1.5819 stg0.8305, having recovered off pullback lows of $1.5795. Rate slipped into early Asian trade, with reported stops sub $1.5790 an early attraction. Rate dipped to an extended low of $1.5786 (off recent highs at $1.5884 Feb1) before picking up fresh demand. Rate recovered through the balance of the session, stepping its way to an eventual high of $1.5825, with early Europe extending this move to $1.5842, as it retested the NY highs. This early move seen driven as EUR/GBP with rate able to step its way back toward the earlier high, with release of stronger than forecast UK CIPS services PMI data providing the lift that took it on to $1.5862. Cable slipped back, failing to clear the 76.4% retrace area of the pullback from $1.5884 to $1.5786, which allowed the cross to edge up to stg0.83215. Despite set back sterling retains an underlying bid tone.
EasyForexNews Research Team