Closed in NY Friday at $1.5360 after rate had seen post US NFP lows of $1.5279 before spiking back up to $1.5440 as market turned focus on to the possibility of QE3 based on the jobs data. Rate edged to early highs in Asia of $1.5377 before easing lower, the rate marking overnight lows at $1.5344 before settling between $1.5360/75 ahead of the European open. UK closed Mon-Tue for the Jubilee celebrations expected to make for thin conditions in sterling trade, though most trading rooms have skeleton staffing. EUR/GBP consolidated Friday’s extended rally to stg0.8093, with trade through Asia contained within a range of stg0.8067-0.80915, the rate trading around stg0.8080 into early Europe. End of the month now out of the way and expected to allow sterling to recoup some of its recent losses versus the euro, with performance against the dollar to be determined by Thursday’s Fed Bernanke testimony. No change widely expected at Thursday’s BOE rate decision, though a decision on more QE to be watched, making the PMI services data key. Cable bids $1.5345/30, $1.5280. Offers $1.5375/85, $1.5400/15.
EasyForexNews Research Team