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 $1.5458. Rate recovered, settling back between $1.5473/83 into the Asian afternoon before getting a late session lift to $1.5485/90. Rate currently trades around $1.5485. The apparent risk appetite seen in the market failing to benefit the pound as it continues to feel the negative effects of that growth data, with talk suggesting that it could place pressure on the UK’s AAA ratings. Support remains in place between $1.5460/50, a break to open a deeper move toward $1.5415/00 ahead of Jul 12 lows of $1.5393. Resistance remains into $1.5520, with interim interest noted at $1.5500/05. A light data calendar for the UK Thursday, BOE King speaks at a Global Investment Conference in Europe with ECB Draghi, with US jobless claims (1230GMT) seen as main focus.
EasyForexNews Research Team