Closed in NY at $1.5650 having recovered from initial Fed Bernanke react lows of $1.5555, seen as the Fed Chairman made no reference to QE3. The recovery was seen in tandem with EUR/USD as short term players bought into the pullback and squeezed out trailing stops. Rate initially marked lows at $1.5644 into Asian dealing before general risk appetite lifted rate on to $1.5668, matching Tuesday’s European high (Asia Tues saw $1.5677). Rate drifted away from the highs, again in line with EUR/USD corrective pullback, as EUR/GBP held a tight range around stg0.7850. Rate has slightly extended intraday lows to $1.5643 into early Europe, with rate currently holding heavy in early subdued conditions. Bids seen into $1.5640 ($1.5641 23.6% $1.5555-1.5668), a break to open a deeper move toward $1.5625/20 ahead of $1.5610/00 and $1.5585/80. Resistance remains at$1.5668-77 ahead of $$1.5687 (76.4% $1.5778-1.5393), a break to open a move toward $1.5700 ahead of $1.5720. EUR/GBP traded within stg0.7846/55 in Asia, inside stg0.7832-77 recent parameters. UK jobs data at 0830GMT.
EasyForexNews Research Team