Closed in NY at $1.6198, after recovering off session lows of $1.6161. Rate marked Asian highs into opening trade at $1.6199 before tracking EUR/USD lower, though move was seen more of a drift off in thin trade conditions as Japan closed Thursday and Friday to complete Golden Week holidays. Rate touched a low of $1.6176 before recovering, holding around $1.6190 into early Europe with release of weaker than expected Nationwide house data into Europe having little effect. UK services PMI data due at 0828GMT will provide early domestic interest, but main focus in markets will be provided by today’s ECB rate decision, and more importantly ECB Draghi’s press conference and comments after this week’s poor growth and employment data in the Eurozone. BOE King will make an appearance on BBC R4 at 0710GMT, following on from last night’s BBC lecture. Cable offers seen into $1.6210 ($1.6209 NY recovery high, 23.6% $1.6302-1.6161), a break to open a move toward $1.6130/40 ahead of $1.6270. Bids seen at the Asia low of $1.6176 ahead of $1.6161, with stops remaining in place below $1.6160.
EasyForexNews Research Team