GBP closed in NY at $1.6144, the rate having recovered from a pullback low of $1.6127 after extending recent highs earlier in the day to $1.6164. Rate consolidated its recent recovery, trade through the Asian session contained within a range of $1.6136/51, with early sales into Europe retesting the overnight low before marking a fresh base at $1.6131. Rate recovered, the move up aided by EUR/USD recovery as the cross edged up toward stg0.8280, after holding between stg0.8172/78 through Asia, with Asian sovereign sales into $1.6150 countering. Stops through $1.6155/70 then became targeted, traders saying that market wanted them out ahead of UK GDP, with triggered buying taking rate to extended highs of $1.6172. Rate settled back to $1.6140 into data release, the -0.2% Q/Q show for Q1 putting the UK into recession and dropped cable to $1.6090, spiking EUR/GBP to stg0.8210. GBP extended lows to $1.6082 and was seen well supported by Asian sovereign buys but recovery efforts remained shallow.
EasyForexNews Research Team