Closed in NY at $1.6179, the rate having retained an underlying buoyant tone through Thursday’s session, holding just off extended highs at $1.6208, with pullbacks in this session contained by $1.6167. Rate was knocked down to $1.6166 into early Asian dealing as it tracked EUR/USD negative reaction to S&P’s late NY session downgrading of Spain (2 notches to BBB+). Rate recovered to $1.6191 before stalling, the rate then drifting lower through the balance of the overnight session with early Europe adding further weight as it broke under its overnight low to extend base to $1.6161. Traders report that dips continue to attract demand interest with demand noted around the $1.6160 level ($1.6159 NY low Apr26), a break of $1.6140 to open a deeper move toward $1.6110/00. Resistance remains in place between $1.6190/1.6200, a break to expose Thursday’s high at $1.6208, with offers noted into $1.6210. Stops remain through $1.6210/20. Little datawise for the UK today, focus on BOE Tucker speaking in Brux at 0740GMT ahead of US GDP at 1230GMT.
EasyForexNews Research Team