Cable closed in NY at $1.5820, with trade through Asia contained within a tight $1.5811/33 range as market awaited the result of the Greek PSI take up at 0600GMT. The 83.5% take up prompted a paring back in risk positions, with cable tracking EUR/USD slippage and breaking down to $1.5790. Rate found willing buyers into the dip which allowed rate to nudge back above the figure. Rate recovered in early Europe to $1.5820, as EUR/GBP was pressed to an extended low of stg0.8361 (Asia stg0.8364/88) on Swiss name sales. Sterling slipped lower, paring early recovery gains ahead of UK IP data, with cable extending lows to $1.5787, cross edging back to stg0.8375 into release. Weak IP data dropped cable to $1.5766, with second wave sales extending move to $1.5751 before demand cushioned. EUR/GBP spiked back to stg0.83935, but held off a retest of Thursday’s highs at stg0.8399. Sterling was trading off lows ahead of the NY open, Cable trading back above $1.5770, the cross around stg0.8387.
EasyForexNews Research Team