Opened early Europe at $1.5542, stg0.7882, GBP closed in NY at $1.5540, off session lows of $1.5531 after rate lost further ground following the FOMC announcement. Lack of new measures disappointed those expecting something more dovish and caused a spike higher in the USD. Rate extended its recovery into early Asia, the move tracking EUR/USD early lift but move met decent resistance into $1.5550. Macro sales of cable along with ongoing demand for EUR/GBP weighed on the pound taking cable to extended lows of $1.5523. Rate recovered through the Asian afternoon, settling between $1.5535/45 into Europe. EUR/GBP held within stg0.7868-83, off NY highs of stg0.7894. GBP recovery extended to $1.5558 into early Europe on Asian sovereign buys, but continued sterling sales via crosses continued to provide a counter. Rate dipped to $1.5528 ahead of UK construction PMI, bouncing back to $1.5545 on stronger than expected data. Break of stg0.7900 saw cable dip back under $1.5530, only for strong EUR/USD demand to take it to $1.5571 late morning.
EasyForexNews Research Team