Closed in NY at $1.5667, off session lows of $1.5660 with rate able to hold above the earlier Asian base at $1.5650 despite the Fitch outlook change for the UK to negative. Rate edged up to mark overnight highs at $1.5671 into early Asian dealing before reversing lower, the rate breaking below $1.5650 to extend pullback lows off Tuesday’s highs of $1.5745 to $1.5636 (76.4% $1.5603/1.5749). Rate recovered, nudging its way back toward the earlier high before settling around $1.5660 into Europe. EUR/GBP was contained within stg0.8314/29 through Asia, with early demand into Europe extending the highs to stg0.8337. Strong offers noted through stg0.8340/50. Little on the UK data calendar for today, BOE Broadbent due to speak at an MNI event at 1130GMT. Dollar action remains the main driver of trade as market adjusts on reported QE3 unwinds following the recent FOMC which was seen pushing this likelihood into the background. Cable offers remain at $1.5671 ahead of $1.5680/85, a break exposes $1.5700/05 ahead of $1.5720 ($1.5719 76.4% $1.5745/1.5636). Support $1.5636, $1.5605/00.
EasyForexNews Research Team