Closed in NY at $1.6260, off late session highs of $1.6280. Thin trade conditions, with Japan and China missing today, saw rate track the initial pullback in EUR/USD, the rate posting overnight lows at $1.6257 before picking up fresh demand that lifted the rate back through Friday’s high to extend the recent recovery to $1.6289. Rate retains its buoyant tone into early Europe, the rate currently trading around $1.6280. EUR/GBP, extended its 2012 lows to stg0.81295 in Asia, with one trader suggesting this pair is now seen as a proxy for shorting the euro which in turn is seen providing support for cable on pullbacks. However, last day of the month may see some demand emerge in this pair which could provide a minor counter for cable. Cable offers seen placed through to $1.6300, with stops above, a break to open a move toward $1.6320, with stops above. Support seen into $1.6250, stronger between $1.6230/20. For EUR/GBP, bids seen placed from stg0.8130 through to stg0.8120, more at stg0.8100 with stg0.8070-50 seen as an attainable short term target. Resistance stg0.8150.
EasyForexNews Research Team