Closed in NY at $1.5707 with rate squeezing to $1.5703 overnight lows into early Asia before turning higher and pushing to highs of $1.5730. Rate settled back into a $1.5720/25 range through the mid part of the overnight session before easing to $1.5715 and settling into a wider $1.5715/25 ahead of the European open. EUR/GBP was contained within a range of stg0.7802/15 leaving cable to track EUR/USD moves. The cross opens Europe around stg0.7810. A light domestic calendar today with most focus seen on this week’s central bank policy announcements starting with the FOMC Wednesday and ahead of Thursday’s ECB decision, where market will be watching to see if the ECB can fulfill expectations to support the euro following Draghi comments last week. Month end flows will also be watched at the fixings could benefit the euro, along with possible European sovereign cross demand. GBP offers seen placed at $1.5730 ($1.5732 61.8% $1.5768-1.5673), a break to open a move on toward $1.5745/50 ($1.5746 76.4%;$1.5750 July 30 high) ahead of $1.5768. Support seen at $1.5685/80 ahead of stronger interest into $1.5670.
EasyForexNews Research Team