Opened early Europe at $1.5676, stg0.8082, GBP closed in NY at $1.5717 having seen a volatile post FOMC session with moves tracking EUR/USD reaction. Rate initially dropped down to retest the earlier post BOE Minutes lows at $1.5651 before bouncing sharply to $1.5755. Rate then eased to $1.5675 before settling between $1.5710/20 into the close. Rate marked overnight highs at $1.5715 into early Asia before tracking EUR/USD lower as Asian equity markets showed their disappointment of no announced QE3, followed later by release of weaker than forecast China PMI data which weighed on risk. Rate eased to $1.5674, settling between $1.5675/90 into Europe. Sterling came under fresh pressure into Europe, the cross breaking out of its Asian stg0.8070/83 range to stg0.8090. EUR/USD dropped back on release of weak German PMI data and took cable down to $1.5658, though the cross eased off highs on the euro pressure. Cable edged to $1.5684 ahead of UK retail sales, the strong number taking rate above $1.57, extending to $1.5734. Rate remained buyed above $1.5700 ahead of NY.
EasyForexNews Research Team