Opened early Europe at $1.5810, stg0.8086, GBP closed in NY at $1.5826 after a late session recovery saw rate track EUR/USD stronger IMM close inspired rally which took it to late highs of $1.5841. This lagging of EUR/USD rise saw EUR/GBP extend its recent recovery to stg0.8098 but was seen meeting strong hedge fund offers ahead of stg0.8100. GBP posted early Asian session highs at $1.5832 before turning lower, the drift down to session lows of $1.5811 trailed EUR/USD slippage which allowed the cross to ease to stg0.80825, after it too met stiff resistance at stg0.8098 in this session. Early middle east cable demand was seen into Europe, with hedge fund short covering providing an added lift that took rate to extended highs of $1.5848. Rally met Asian sovereign sales which capped before rate eased to $1.5835 into UK CPI data. The softer than forecast release took cable initially to $1.5811 before extending to $1.5797. Recovery attempts were thwarted by negative IMF UK comments extending lows to $1.5765 before settling close to $1.5780.
EasyForexNews Research Team