Opened in early Europe at $1.5722 and stg0.8377. Opened in Asia at $1.5693 after lows in NY of $1.5645, GBP tracked the EUR weakness and also came under some pressure from macro sellers and model buying in EUR/GBP. Risk then re-emerged towards the end of the NY session as reports came in that Greece’s Samaras would be signing the austerity pledge leading a euro recovery and short covering in cable back towards $1.5700. Asia saw a small dip to $1.5675 before comments from China PBOC’s Zhou supporting EU efforts led a risk rally to $1.5720. The move was however hampered by gains in EUR/GBP from stg0.8262 to stg0.8379. Cable opened firmer in europe to $1.5736, before tracking EUR/USD slippage to $1.5705. Large GBP/AUD sales pressed the rate to $1.5675, before recovering to $1.5695. Mixed UK Unemployment data and the BOE inflation report failed to spring cable into life closing the morning around $1.5690. EUR/GBP posted highs of stg0.8401 on the back of a buy fix from a UK clearer, later easing to stg0.8385 and sit mid-range.
EasyForexNews Research Team