Opened early Europe at $1.6063, stg0.8022, Cable closed in NY at $1.6072 with early demand, following the weekend cut in China’s RRR by 50bps, taking the rate up to overnight highs of $1.6080 as early market reacted to Aussie’s lead. Rate reversed off highs as it tracked EUR/USD drop below $1.2900 as Greek far Left party Syriza announced it would not be taking part in coalition talks later today. EUR/GBP dropped from stg0.80345 to stg0.8016 and diverted some of the downside pressure, providing cable with support at $1.6054 before it settled between $1.6060/70. The cross settled between stg0.8020/30 ahead of the European open. Fresh pressure on the euro into Europe saw cable pressed back to earlier lows, though the cross again diverted part of the pressure. The cross extended its corrective pullback off Friday’s recovery high of stg0.8050 to stg0.80055 and aided cable support as it extended lows to $1.6051. Retail demand placed between $1.6055/40 was the main demand interest which cushioned, allowing rate to recover back to $1.6060/70.
EasyForexNews Research Team