Closed in NY at $1.5637 after rate had been pressured to intraday lows of $1.5603 with recovery to $1.5646 through the rest of the session seen laboured as it trailed EUR/USD stronger correction. This in turn allowed EUR/GBP to break back above stg0.84, marking a high in NY at stg0.8417. Cable recovered off an early Asia low of $1.5635, extending recovery to $1.5662 as rate trailed an extended EUR/USD recovery, with EUR/GBP able to extend its recovery to stg0.8424. Cable found support between $1.5635/40 on pullbacks, while the $1.5660/65 area continued to cap in to early Europe. EUR/GBP broke back below stg0.8400 on general euro slippage, the move adding buoyancy to cable as it ground its way to an eventual low of stg0.83755, allowing cable to extend recovery to $1.5674 (76.4% $1.5696/03), aided by release of better than forecast UK trade data, before rally faltered. Cable drifted back toward $1.5650, as EUR/USD eased its way toward $1.3110/00, with EUR/GBP finding support around stg0.8375.
EasyForexNews Research Team