GBP closed in NY at $1.5816, the rate having recovered off post UK retail sales data lows of $1.5770 to make a brief show above resistance at $1.5820 ($1.5822 NY high). Rate extended recovery to $1.5827, settling between $1.5810/27 through most of the overnight session before extending the base to $1.5807 ahead of Europe. Rate picked up strong demand into early Europe, the same Russian names that were buying EUR/USD bought cable which spiked rate to an initial high of $1.5880. Second wave buys extended the move in stop driven trade, moving through Thursday’s high at $1.5892 and on to $1.5909 before momentum faltered. EUR/GBP had posted lows of stg0.83365 in early Europe before bouncing back as EUR/USD outpaced cable’s rally, taking the cross to a high of stg0.8362. Cable eased lower, helped by middle eastern supply, before settling between $1.5850/70, while the cross eased back to stg0.8350. Late morning concerns over Eurozone peripherals provided some counter to the earlier risk on driven trade.
EasyForexNews Research Team