Closed in NY at $1.5690, after correcting off late lows of $1.5675 to $1.5710. Trade through Asia saw rate consolidate Wednesday’s losses, with rate restricted to a tight $1.5675/1.5700 range , coming under fresh downside pressure into Europe as it extends lows to $1.5668 and currently holding heavy. EUR/GBP was contained in Asia by stg0.8010/24, after correcting off NY lows of stg0.7998, with this rate so far respecting those overnight parameters leaving cable to take direction from EUR/USD. Second reading of UK Q1 GDP is due at 0830GMT with most expecting the first reading of -0.2% to remain unchanged, downside revisions to construction output countered by upside revisions in service output. However, a surprise move either way expected to cause some reaction. Bids seen placed toward option barrier interest at $1.5650, a break expected to meet demand into $1.5645/40 ($1.5642 61.8% $1.5234-1.6304) with stops below. Further demand seen at $1.5610/00 ahead of $1./5580. Resistance remains at $1.5700. EUR/GBP bids remain around stg0.8000, more stg0.7985/80.
EasyForexNews Research Team