Opened early Europe at $1.5682, stg0.8017, GBP closed in NY at $1.5690, after correcting off late lows of $1.5675 to $1.5710 as rate tracked EUR/USD moves. Trade through Asia
saw rate consolidate Wednesday’s losses, trade restricted to a tight $1.5675/1.5700 range, before coming under fresh downside pressure into Europe as it extended lows to $1.5668. EUR/GBP was contained in Asia by stg0.8010/24, after correcting off NY lows of stg0.7998. Early pressure on the euro from release of weaker than forecast Eurozone PMI data saw EUR/GBP pressed down to stg0.8000 where it met decent demand, which then allowed cable to be dragged lower by the EUR/USD slippage. Rate found support at $1.5668 before bouncing to $1.5700. Rate reversed off highs as EUR/USD continued to grind lower, and the cross began to edge away from stg0.8000. Release of weak German Ifo dropped cable to $1.5639 on extended EUR/USD fall, but recovered to $1.5664 ahead of UK GDP. Weak second reading of Q1 data dropped cable to $1.5646 before buyers lifted rate toward $1.5690 ahead of the NY open.
EasyForexNews Research Team