Opened early Europe at $1.5662, stg0.7848, GBP closed in NY at $1.5632 after rate bounced from a low of $1.5518 to $1.5655, the move up boosted by the release of weak US retail sales with market aware that the Fed’s future policy is data dependent. GBP continued its corrective pullback into early Asia before buyers emerged to base the move at $1.5626. Rate recovered, tracking EUR/USD rally, as the cross consolidated Monday’s extended move down to stg0.7832 between stg0.78475-0.7854, pushing to a high of $1.5677. Offers placed on the approach to $1.5680 countered the move and allowed rate to drift back to $1.5650 into early Europe. Rate squeezed to $1.5540, as traders adjusted long positions ahead of UK CPI data, the cross nudging up toward stg0.7870 ahead of release. Weak headline number confirmed pre release whispers, taking rate to extended lows of $1.5610 but market positioning prompted dip buyers to emerge and correct rate back around $1.5650. The cross was taken up to stg0.7877 but sellers were quick to take it back below stg0.7860.
EasyForexNews Research Team