Closed in NY at $1.5632, as rate recovered off late European lows of $1.5608. Rate managed to extend the recovery to $1.5637 into early Asia before turning lower again. Move down tracked EUR/USD slippage, which in turn was seen as a reaction to the AUD sell off following release of weak Australian retail sales data. EUR/GBP diverted some of the negative EUR/USD pressure away from cable, as this rate squeezed down from stg0.7990 to stg0.7979, though cable did retest toward Tuesday’s lows, touching a low of $1.5609. Recovery struggled to move above $1.5620 ahead of the European open, the rate currently trading around $1.5616. The cross currently trades around stg0.7984. A break above $1.5620 to open a move toward $1.5650 ahead of $1.5690/00. Support remains in place toward $1.5600 ($1.5603 May12 low) with barrier interest noted at the figure and drawing support ahead. A break of $1.5600 to open a deeper move toward $1.5580 ahead of $1.5550. UK lending and money supply data due at 0830GMT, but headlines remain the key driving force via the euro.
EasyForexNews Research Team