Opened around $1.5770 after hitting lows of $1.5730 in NY late Friday. Cable pushed up in early trading to $1.5799 tracking EUR/USD on optimism that the Greek parliament would pass the latest austerity measures. GBP slumped back to $1.5769 as EUR/GBP tracked higher on the news that the vote had passed with a 199 for and 74 against. The pair then dipped again to $1.5760. A weekend CBI report cut UK growth forecasts in 2012 from 1.2% to 0.9%, although it added that the country would avoid a recession, citing a pick up in business sentiment since Christmas. GBP later picked up again to $1.5795 as EUR/USD rose on macro buying and firming Asian bourses. The cross traded steadily higher from stg0.8368 to stg0.8394 and remains firm ahead of the european open. GBP bids are now seen down at $1.5730 with offers around $1.5800 and larger up at $1.5840/50 ($1.5849 Fri high). EUR/GBP offers lie in wait at stg0.8400/10 with support seen towards stg0.8365 and stg0.8355.
EasyForexNews Research Team