Closed in NY at $1.5670, off session lows of $1.5637, and continued to recover into Asian trade with rate trailing EUR/USD stronger correction to a session high of $1.5692. EUR/GBP, which had seen lows Monday of stg0.8022, edged up from stg0.8027 to stg0.8041 reflecting the strong euro recovery. Cable settled between $1.5680/90 through the Asian afternoon and into Europe. Rate currently trades around $1.5690. The cross trades around stg0.8035. Early Europe seen showing demand for sterling, as cable pressures the overnight high, with offers seen placed into $1.5700/05. A break here to allow for a move on toward $1.5720 ahead of $1.5740/50 and $1.5765. Support seen back at $1.5670 ahead of $1.5650 and $1.5637. UK CPI seen as key data release this morning, with size of Wednesday’s initial ECTR to be announced this afternoon (1500GMT). EUR/GBP demand remains into stg0.8020, more around recent lows at stg0.8012 with stops placed on a break of stg0.8000. Resistance stg0.8040/50.
EasyForexNews Research Team