Opened early Europe at $1.5828 stg0.8388, having recovered off a pullback low of $1.5797, seen as EUR/GBP extended its recovery to a high of stg0.8388. Rate was shoved down to extended lows of $1.5794 in early Asian trade, as rate tracked EUR/USD negative reaction to the headline reports that Greek political leaders had failed to reach a full agreement on required austerity proposals. Dip attracted demand which allowed rate to recover to $1.5821, extending to $1.5845 late session as it tracked EUR/USD stronger recovery. GBP trailing EUR/USD saw EUR/GBP extend recovery to stg0.8402. Cable extended to $1.5848 in early Europe before getting pulled back by EUR/USD slippage, meeting support at $1.5825/20 with buoyancy provided by the cross as it eased initially to stg0.8380. Release of stronger than expected UK trade and manufacturing data took cable through $1.5850 to $1.5861, the cross to stg0.8372, but the pound failed to hold gains as market positioned ahead of BOE decision, focus on size of QE extension.
EasyForexNews Research Team