Opened early Europe at $1.5614, stg0.7985, GBP closed in NY at $1.5632, as rate recovered off late European lows of $1.5608. Rate managed to extend the recovery to $1.5637 into early Asia before reversing. Move down tracked EUR/USD slippage, which in turn was seen as a reaction to the AUD sell off following release of weak Australian retail sales data. EUR/GBP diverted some of the negative EUR/USD pressure, as this rate squeezed down from stg0.7990 to stg0.7979, though cable did ease to $1.5609. Recovery struggled to move above $1.5620 ahead of the European open. Early Russian buying edged rate to $1.5625 before same names reversed taking it through the $1.5600 barrier. Initial break saw lows of $1.5578. EUR/GBP edged higher but remained below stg0.8000 which led to GBP tracking further EUR/USD slippage, cable eventually squeezing to lows of $1.5550. Traders have reported demand in place between $1.5550/40 with stops below, a break to open a deeper move toward $1.5520 ahead of $1.5500. Resistance now seen at $1.5600.
EasyForexNews Research Team