Opened early Europe at $1.5435, stg0.7908, GBP closed in NY at $1.5432 after seeing lows in this session of $1.5393, holding above tech support at $1.5390 (76.4% $1.5269-1.5778). Rate initially edged to $1.5434 in early Asian trade before turning lower, pulled down by EUR/USD negative react to Moody’s downgrade of Italian bonds, posting session lows at $1.5419 before recovering. Rate extended recovery to $1.5444 as risk was given a boost by better than expected Chinese data with rate holding above $1.5425 ahead of the European open. EUR/GBP held back above stg0.79 through Asia, with trade contained within stg0.7902/14. Cable tracked the early downside pressure on EUR/USD into Europe, extending lows to $1.5414 (61.8% $1.5395-1.5444) before bouncing to $1.5445. Recovery extended to $1.5465 (38.2% $1.5578-1.5395) before faltering, though found support at the broken Asian high at $1.5444. EUR/GBP also reflected the slight firmer tone in sterling, easing to stg0.78955 which was seen adding to cable buoyancy.
EasyForexNews Research Team