Opened early Europe at $1.5931 stg0.8238 Cable closed in NY at $1.5920 after rate had corrected back from its earlier European highs of $1.5972 to $1.5916 in NY. Rate edged higher into early Asian dealing with good demand seen for sterling-yen from Japanese accounts which pushed cable to highs of $1.5945. Like EUR/USD, once this demand dried up so rate drifted lower, touching a base at $1.5917 before settling around $1.5925 into the European open. Recovery to $1.5930 ran into Asian sovereign sales which pressed the rate below the Asian base and on to $1.5895 before dip attracted fresh demand. Rate recovered back above $1.5900 despite EUR/USD coming under stronger downside pressure which applied pressure on EUR/GBP. BOE Tucker speech was seen hawkish and allowed cable to extend recovery to $1.5930, breaking on to $1.5947 ahead of UK jobs data and BOE Minutes. Posen switching his vote to no change in QE spiked cable to $1.5994, dropping the cross through stg0.8210 to a fresh 2012 low of stg0.8185, before meeting Asian sovereign supply which countered.
EasyForexNews Research Team