Closed in NY at $1.5766 off late session lows at $1.5743 after rate tracked EUR/USD negative reaction to ex-Greek PM comments that preparations were being considered for a Greek exit from EMU. The move lower was tempered by EUR/GBP extending its corrective pullback off earlier highs of stg0.8102 to stg0.8042. Cable continued to take direction from EUR/USDr, the rate moving down from early posted session highs of $1.5771 to retest NY lows at $1.5743. Rate recovered to $1.5767, opening Europe around $1.5750. EUR/GBP extended ease to stg0.8032 in Asia provided cable with some underlying buoyancy, though tone remains heavy with attention turning toward UK retail sales (0830GMT) and CBI trends (1000GMT) data, with BOE MPC Minutes also in view at 0830GMT>. Minutes expected to be finely balanced, the vote to keep rates and QE unchanged expected to be split 8-1 with Miles again voting for an increase in QE. Another member joining Miles will be seen sterling negative, Miles moving back into the no change camp positive. Cable bids into $1.5740, stronger between $1.5735/30. Offers $1.5780/85.
EasyForexNews Research Team