Opened early Europe at $1.5833, stg0.8078, GBP closed in NY Friday at $1.5818, after easing from a late recovery to $1.5838. The corrective pullback continued into early Asia, the move down tracking EUR/USD, with rate touching a low at $1.5795 before recovering. Rate pushed to a session high of $1.5840, as it continued to take direction from EUR/USD, though it trailed the euro’s stronger recovery, allowing EUR/GBP to extend its recovery (off stg0.79505 May16) to stg0.80895. Cable settled between $1.5830/40 into the Asian afternoon before extending its corrective pullback to $1.5820, while the cross eased of its extended highs to open Europe around stg0.8075. Macro accounts were early cable sellers into Europe, seen paring back sterling longs ahead of a data filled week. Rate eased to retest the overnight low but bounced back as the cross was pressed lower by Dutch and german name sales. EUR/GBP settled around stg0.8070, taking cable back toward $1.5840, but reported CTA offers at this level countered, before rate settled around $1.5820.
EasyForexNews Research Team