Opened early Europe at $1.6185 stg0.8124, GBP closed in NY at $1.6181 after rate had seen a recovery from lows of $1.6159 to $1.6215. Rate tracked the early slippage in EUR/USD, as profit take demand for Kiwi, following its recent sell off, drove the early Asian market. Rate recovered to $1.6193 before it settled between $1.6185/90. Results from UK council elections Thursday have shown opposition Labour to have claimed back recently lost councils, but not seen as a major surprise in a mid term election, with the Conservatives expected to have held onto the key London mayoral post. GBP eased lower in early morning trade, initially tracking EUR/USD slippage before overtaking as EUR/GBP met decent support around stg0.8120 (low stg0.8119) on real money short covering. Rate traded down to $1.6166 with recovery efforts proving laboured through most of the session until the cross extended lows late morning to stg0.8117 which took cable through custodial offers at $1.6175 to $1.6185. US employment report now in focus and expected to push up volatility.
EasyForexNews Research Team