GBP closed in NY at $1.5966, off NY rally highs of $1.5974 and seen after markets reacted to dovish comments from Fed’s Bernanke. Rate touched an early high in Asia of $1.5972, as early direction was dictated by strong GBP/JPY demand, but move held off the NY high as well as the reported option barrier at $1.5975. Japanese exporter sales of GBP/JPY acted to press cable to overnight lows of $1.5957 with rate then held between $1.5960/70 into Europe. Cable was pressed back to $1.5943 in early Europe, as rate tracked EUR/USD slippage, but dip quickly attracted fresh demand that lifted rate back toward the overnight highs. Asian sovereign buys were cited as rate pushed on to post fresh 2012 highs at $1.5996, as EUR/GBP eased before meeting support around stg0.8350. A strong bounce back in EUR/USD took cable to $1.5999 but a major French name was a stand out seller ahead of the $1.6000 barrier. Rate eased back between $1.5980/70 in late European morning trade, but underlying tone remained buoyant.
EasyForexNews Research Team