Opened early Europe at $1.5965, stg0.7964, Cable closed in NY at $1.5913, after recovering off a late pullback to $1.5902. Rate extended this recovery into early Asia, the rate pushing to early session highs of $1.5933 before momentum faltered. Rate then drifted lower through the balance of the session, touching a low of $1.5908 ahead of the European open, with rate holding heavy as Europe trading got underway. EUR/GBP was held within stg0.7992-0.80085, which left cable to take direction from EUR/USD moves. The cross was pressuring the Asian highs into Europe, extending highs to stg0.8010 as sterling remained under pressure, traders noting that market was looking to pare back some of its long positions in the pound, taken in the recent safe haven moves. Cable retained a heavy tone through the morning, eventually moving down through Wednesday’s lows at $1.5889, with an eventual triggering of stops through $1.5875/70 taking rate down to $1.5854 ahead of the New York open. The latter moves were seen on dollar demand as the cross held tight around stg0.8000.
EasyForexNews Research Team