Opened early Europe at $1.5610, stg0.8026, opened Asia just off Wednesday’s lows of $1.5574, having eased back from late recovery highs of $1.5610. Rate recovered in early Asia to $1.5596, the move faltering ahead of $1.5600, before settling between $1.5580/95 for the balance of the overnight session. Trade through the Asian session was described as generally subdued, following on from the US holiday, though the underlying tone was seen as risk off. Attentiontoday turns to the interest rate decisions from the BOE and the ECB. Markets are expecting an expansion in QE, though size suggested could be between stg50bln to stg75bln. Cable opened higher in Europe with Middle-Eastern demand lifting to $1.5623, before slipping back on profit take sales. Sterling came under renewed pressure and the rate extended losses through reported sovereign demand to $1.5567, later nudging higher on Asian name demand. Cable continues heavy with any recovery attempts seen shallow. Early funds demand lifted EUR/GBP to stg0.8042, before easing in tandem with EUR/USD to stg0.8030.
EasyForexNews Research Team