GBP closed in NY at $1.6005, below its focus 200-week moving average at $1.6014, though rate had traded to an intraday high of $1.6037 earlier in the session. Release of stronger than forecast Chinese PMI data on Sunday gave an early boost to risk into opening Asian trade, the rate getting lifted to $1.6030 before upside momentum faded with rate drifting lower through the balance of the session to a low of $1.5979. Rate recovered to $1.5995 ahead of the European open before getting pressed back to retest overnight lows into the open. Middle east and model demand emerged into early European trade with rate vaulting back above $1.6000, momentum taking it through $1.6030, then Friday’s high at $1.6037 before faltering around $1.6042. Rate eased back to $1.6015 on reports of Asian sovereign sales only to bounce back to $1.6042 into UK PMI data release. The strong number boosted the recovery to $1.6063, the move taking out barriers at $1.6050. Rate retained a firm tone in late morning trade, though was holding off highs.
EasyForexNews Research Team