The pair closed in NY Thursday at $1.5437 after rate had seen extended highs of $1.5480 following the release of stronger than forecast Q1 GDP data, which in turn is suggested to have relieved calls for further QE. Rate had seen pullback lows in NY of $1.5428 ahead of the close. Early trade into Asia was contained within a tight $1.5430/40 range before it was taken up to $1.5472 on the back of euro-dollar’s recovery. Pullback off this high was buoyed at $1.5450, with rate holding backa bove $1.5460 into Europe. Euro-sterling was pressed to react lows of stg0.8410 (matching Apr1 lows), from pre GDP data highs of stg0.8533, with the market seen mainly positioned long into the numbers. The flushing out of these positions provided a good part of sterling’s strength Thursday with market now seen moving away from QE extension and focusing on suggested chance for an ECB rate cut next week. The cross consolidated Thursday’s move between stg0.8422/37 in Asia, trading around stg0.8430 into Europe. A light data calendar for the UK today with more attention on outside moves. Comment ahead of next week’s ECB meeting will likely influence, but US Q1 GDP at 1230GMT seen as key focus on the day.
EasyForexNews Research Team