Opened early Europe at $1.6230 stg0.8164, GBP closed in NY at $1.6238, after rate had recovered off traded lows at $1.6222 to $1.6240. Rate edged up to retest $1.6240 in early Asia before drifting lower through the balance of the session to an eventual low of $1.6223 ahead of the European open. May Day holiday in Europe made for an early subdued start with sterling pressured lower as traders adjusted positions ahead of UK PMI data. Cable eased to $1.6213, but was seen cushioned by demand placed between $1.6220/00, while EUR/GBP edged up to challenge its 61.8% retrace of the last move down from stg0.8222 to stg0.8123 at stg0.8184. Release of weaker than forecast data dropped cable to $1.6200, bounced to $1.6208 before pressing down to $1.6191 on second wave sales. The cross extended its recovery to stg0.81985 (stg0.8199 76.4%). Cable didn’t look comfortable below $1.62 and eventually recovered back to the $1.6220 area while the cross eased back below stg0.8180. Traders now await US ISM data at 1400GMT for next directional clues.
EasyForexNews Research Team