Closed in NY at $1.6027, the rate trading with a buoyant tone (and off traded lows at $1.5996) after the announcement that BOC governor Carney would be the new BOE Governor come July 2013. Rate was lifted above Monday’s high at $1.6033 to $1.6035 on the initial Eurogroup leak that an agreement had been reached to lower Greek debt to GDP to 124% by 2020. However, a rival wire reported that talks were ongoing and dampened this initial enthusiasm and took rate back to $1.6025. Official announcement confirm the earlier leak saw rate spike up to $1.6045, the moves tracking euro-dollar reaction. Euro-sterling initially pushed higher with euro-dollar before it settled back below stg0.8100 through the Asian afternoon. The Carney announcement has had several analysts suggesting that he is seen as more hawkish than King which could mean UK interest may rise quicker than recent forecasts predicted. Cable holding firm into early Europe, currently around $1.6036, while euro-sterling trades around stg0.8098. UK Q3 GDP 1st revision due at 0930GMT will provide focus. Cable offers $1.6040/50.
EasyForexNews Research Team