Closed in NY at $1.5859 (200-dma Tuesday), off recovery highs of $1.5887, after rate had rallied back from earlier lows of $1.5831. Rate marked Asian lows at $1.5856 in opening trade before edging higher, the rate taking its cue from EUR/USD rise, trading to a high of $1.5896 before momentum faltered. Corrective pullback was support at $1.5870 with rate trading around $1.5880 into early Europe. EUR/GBP extended its recovery off Tuesday’s lows of stg0.8316 to stg0.8360 in Asia (NY high stg0.83545) as cable trailed EUR/USD stronger recovery. Rate was holding toward the overnight high into early Europe. BOE Minutes at 0930GMT the early focus, though most expect a 9-0 vote for unchanged rates, though some suggest Posen may have again split from the bunch in looking for an extra stg25bln in QE. This will be followed by the UK Budget at 1230GMT though most do not expect this to be a major FX event. Suggestions that we could see minimal upward revisions to growth forecasts, with main focus on PSNB and Gilt sales. Cable resistance into $1.5900, $1.5915. Support $1.5855/50, $1.5830.
EasyForexNews Research Team