Opened early Europe at $1.6233 stg0.8164, GBP closed in NY at $1.6220 after rate had recovered off session lows of $1.6186 to $1.6230. Trade in Asia was contained within a reasonably tight range of $1.6219/37, remaining buoyed above $1.62 following two visits below Tuesday. Many traders commented that the rate did not look comfortable below the figure, noting decent demand sitting in the area toward $1.6180. Cable traded heavy into Europe, with slippage in EUR/USD providing the weight as EUR/GBP met support in the stg0.8145/40 area. Release of weak Italian PMI data dropped EUR/USD below $1.3200, taking cable back under $1.6200 but EUR/GBP diverted some pressure as it eased to stg0.8130. French and German PMI data also softer than flash estimates, and poor German employment data took euro lower, the cross to fresh 22-mth/2012 lows of stg0.81155. Move aided cable support at $1.6195/90 but further euro pressure squeezed rate down to $1.6185. Cable jumped to $1.6229 on strong PMI construction data, easing back toward earlier lows on further EUR/USD easing.
EasyForexNews Research Team