Opened early Europe at $1.5493, stg0.7935, GBP closed in NY Friday at $1.5490, off session lows of $1.5462. Rate was pressed lower into early Asian trade, as rate tracked the early downside pressure on EUR/USD, though rate remained above its Friday lows, meeting demand around the $1.5470 level. Rate recovered to $1.5495, again in line with EUR/USD upside correction, with rate holding firm into early Europe. EUR/GBPuro-sterling was pressed to extended lows of stg0.7906 in early Asia, as GBP lagged EUR/USD early slippage, recovering to stg0.79365 before settling around stg0.7930 into Europe. Swiss and middle eastern demand for GBP into early Europe managed to lift the rate above $1.5500, taking it to an eventual high of $1.5514 before rally faltered. Qatar and Abu Dhabi interest to bid for 42 UK Marriott hotels (stg700mln) as well as BAE being a front runner to sell 350 training jets to the USAF (stg7.1bln) seen linked to the early demand. However, move met decent supply which pressed cable back to Asian lows as market positioned ahead of BOE Tucker TSC testimony.
EasyForexNews Research Team