Opened early Europe at $1.5485, stg0.7842, GBP closed in NY at $1.5496, off recovery highs of $1.5518 after rate had been knocked to intraday lows of $1.5459 following the release of poor 2Q GDP data. Rate continued its downside drift into Asia, the rate tracking EUR/USD slippage, as EUR/GBP was held within a range of stg0.7836/43, to an eventual low of $1.5471. Rate recovered, settling back between $1.5473/83 into the Asian afternoon before getting a late session lift to $1.5485/90. The risk appetite seen in the market failed to benefit the pound as it continued to feel the negative effects of that growth data, with talk suggesting that it could place pressure on the UK’s AAA ratings. GBP came under further pressure into Europe, the rate was pressed back to retest the overnight lows before recovering with EUR/USD, but reported offers between $1.5500/05 capped. Dip back to $1.5475/70 met support before rate edged back toward the $1.5500 area as EUR/GBP reversed off early highs of stg0.7854 to stg0.7823 on suggested European sovereign euro recycling.
EasyForexNews Research Team