Opened early Europe at $1.6140, stg0.8024, EUR/GBP came under pressure in early Asia, a UK clearer a noted seller as the stg0.8000 barrier was targeted. Rate posted fresh 42-month lows at stg0.8001 before recovering. Move acted to take cable from early lows of $1.6128 (NY close $1.6135) to session highs of $1.6151. recovery in the cross to stg0.8020 allowed cable to slowly step its way down to session lows of $1.6124 before it settled between $1.6135/45 ahead of Europe. Rate edged back to overnight highs at $1.6151 in early trade, as it tracked EUR/USD early recovery, but EUR/GBP extending its recovery away from stg0.8001 into resistance area between stg0.8035/45, on German corporate buys, saw cable squeeze back to $1.6100 ahead of the release of UK IP/mfg data. UK data came in stronger than forecast and allowed for a recovery to $1.6120, a pullback in EUR/USD taking it below $1.6100 to $1.6092. UK corp buying emerged late morning to take rate back to $1.6115, the cross pressed back below stg0.8035. Sterling remains mixed, strong versus the euro, while soft versus dollar.
EasyForexNews Research Team