Opened in Asia at $1.5875 and ground lower in tandem with euro-dollar to $1.5860 following comments from European officials that underlined there was no early deal to disburse the latest Greek aid payment. Trade continued flat tied to a narrow range, late supply pressed to $1.5858 where the rate found support ahead of $1.5850 and recovered to $1.5870 into Europe. On the downside strong demand seen at $1.5855/50 ($1.5851 – 200 dma), with stops set on a break, through here opens more bids at $1.5820, ahead of $1.5805/00. Euro-sterling made a show back under stg0.8000 on the Greek news to stg0.7988, before bouncing to stg0.8020. Late trade eased to intraday lows and the cross sits heavy into Europe. Strong demand seen at stg0.7970/60, ahead of stg0.7945/40. Traders look ahead to release of UK CPI data at 0830GMT which is expected to climb again after dropping to 2.2% y/y in September from 2.5% in August.
EasyForexNews Research Team