Closed in NY at $1.6194, just off recovery highs of $1.6197, after rate had corrected off Asian lows of $1.6115. Rate extended recovery highs to $1.6199 in early Asian dealing, but reported offers into $1.6200 countered. Rate drifted back to $1.6170 as it tracked EUR/USD moves, though move was provided some buoyancy as EUR/GBP, which had seen recovery highs of stg0.8080 in NY, off post weekend lows of stg0.8037, eased from stg0.8066 to stg0.80555. GBP trades around $1.6175 into early Europe, the cross holding toward the bottom of its overnight range. Release of weak RICS house data and BRC shop price inflation failed to provide any major negative effect. Very light data calendar today with main attention on the fallout from the weekend election results in the Eurozone, especially in Greece as parties there struggle to form a government with it looking increasingly likely that they will have to go through another election (June17?). Cable offers $1.6200/05 the $1.6215/20 with stops above. Bids $1.6170 ahead of $1.6145/35.
EasyForexNews Research Team