Opened early Europe at $1.6168 stg0.8179, GBP closed in NY at $1.6167, after rate had bounced back from post GDP release lows of $1.6082 to $1.6183 as it took full advantage of the dollar sell off as market reacted to dovish comments from Ben Bernanke (seen leaving door ajar to possible QE3) in his post FOMC press conference. Rate consolidated this bounce back in Asia with trade contained within $1.6159/78, trading around $1.6170 into early Europe. Release of upbeat consumer confidence data from the Nationwide aided buoyancy. Fresh demand into early Europe gradually nudged rate toward the option barrier at $1.6200, the eventual break taking it on to $1.6208 before momentum faded. However, corrective pullbacks enjoyed decent demand, reports had been that the leveraged community had missed out on the overnight bounce and would cushion pullbacks. The pullbacks were restricted to $1.6185/80 with rate holding tight toward $1.6200 ahead of New York and allowing EUR/GBP to press back to stg0.8158, extending the pullback from post GDP highs of stg0.8222.
EasyForexNews Research Team