Opened early Europe at $1.5545, stg0.8131, GBP closed in NY at $1.5552, off recovery highs of $1.5564 as it took direction from EUR/USD moves, risk gaining a boost on the back of reports suggesting G20 were preparing for coordinated action to provide liquidity if needed after the Greek election Sunday. Rate continued the pullback in Asia, touching $1.5537 before bouncing, the recovery led by EUR/USD rally. Rate edged to $1.5558, though gains were hampered as EUR/GBP extended its recovery through the NY high of stg0.8120 to stg0.8132. Reaction to last night’s Mansion House speech, where BOE King mentioned that the case for further monetary easing is growing, was fairly muted into early Europe. However, cable dropped to $1.5476 on announcement of a ECTR auction for next week, only to pick up fresh demand that lifted it back above $1.55. Major Dutch name demand for sterling took cable above $1.5550 late morning, while the cross eased away from its extended react highs of stg0.8152. Trading generally seen subdued ahead of the weekend risk event.
EasyForexNews Research Team