Opened early Europe at $1.5673, stg0.7997, GBP closed Monday’s session at $1.5678, just off lows of $1.5675. Trade through Asia tracked EUR/USD, as the cross was contained within a tight range of stg0.79895/0.8000, with an early push up to session highs at $1.5683 reversing, then moving through Monday’s base before closing the gap left by Friday’s NY close at $1.5660 and Monday’s Asia open at $1.5675 as it traded to a low of $1.5656. Rate recovered to $1.5682 ahead of the European open as risk was boosted on positive Asian equity markets. The risk-on tone continued into Europe, though benefitted the euro more than sterling, taking EUR/GBP to stg0.8005 which countered cable’s extended rally at $1.5716 (Monday high $1.5717). Asian sovereign sales of cable provided the main weight, as rate eased back under $1.5700, but the cross reversing off highs and tracking EUR/USD stronger corrective pullback diverted some of the pressure and provided buoyancy around $1.5680. Release of strong CBI data only provided some minor added support ahead of the NY return.
EasyForexNews Research Team