Opened early Europe at $1.5702, stg0.8019, GBP closed in NY Friday at $1.5660, as rate recovered off traded lows of $1.5630. Rate was marked higher into early Asia on weekend press reports which prompted a move back into risk. Weekend poll results in Greece showed pro-bailout ND overtaking anti-austerity SYRIZA, talk of Swiss capital controls to avert Chf inflows in the case of a Greek EMU exit, EU plan to shore up European banks, as well as weak talk China looking at an infrastructure stimulus package. The EUR led the majors higher, EUR/GBP also being marked up, closing NY at stg0.7990, opening Asia at stg0.8008. GBP trailed EUR/USD extended recovery through Asia, edging to a high of $1.5710, while the cross moved up to stg0.8025. GBP played catch up into early Europe, extending gains to $1.5717 before the cross edged on to stg0.8037 which pressed cable back toward $1.5700. Reversal in early euro strength, a UK clearer taking the cross back to stg0.8014, provided some buoyancy for cable, the rate holding close $1.5700, the level the strike of an expiring option.
EasyForexNews Research Team