Opened early Europe at $1.5512, stg0.7784, GBP closed in NY at $1.5505 after recovering from a NY session low of $1.5489, easing off recovery highs of $1.5520 into the close. Rate extended this pullback into early Asia, marking lows at $1.5491 before recovering in tandem with EUR/USD (EUR/GBP confined to a tight stg0.7776-88 range) to a high of $1.5517 ahead of the European open. Rate was holding around $1.5510 into Europe, the cross around stg0.7784. Rate tracked EUR/USD lower into early Europe, touching overnight lows before recovering in line. Rate picked up momentum ahead of UK GDP data, lifting to a high of $1.5552 before demand faded and rate sank back to $1.5535 into the data release. Very weak UK GDP data, Q2 coming in at -0.7% Q/Q was well below forecasts of -0.2%, dropping GBP to $1.5474, with second wave sales extending move to $1.5469. A UK merchant bank was a stand out buyer into the dip allowing it to recover back above $1.5500 ahead of the New York open. Euro-sterling spiked to stg0.7840, holding above broken resistance at stg0.7825/20 into New York
EasyForexNews Research Team