Opened early Europe at $1.5478, stg0.8002, GBP closed in NY at $1.5482 after rate was pressured to session lows of $1.5475. Rate tracked early downside pressure on EUR/USD, led by early AUD sales, which took rate to extended lows of $1.5463 before recovering. Recovery efforts remained fairly muted, BOE Posen comments countering an improvement in GfK consumer confidence data with topside capped at $1.5485 in the overnight session. EUR/GBP consolidated Wednesday’s end month inspired recovery to stg0.8000, with rate trading around this high between stg0.79895/0.8006 in Asia. The cross was holding firm into early European dealing with suggestions we could still see end month sovereign demand for the pair. The cross tracked EUR/USD stronger recovery into Europe, eventually pushing up to stg0.8016 before meeting reported offers between stg0.8015/20 (stg0.8016). This move provided a counter to cable’s efforts to extend its recovery, but the eventual move above $1.5500, aided by M&A demand, took cable to highs of $1.5526 as the cross eased back toward stg0.8000.
EasyForexNews Research Team