Opened early Europe at $1.5367, stg0.8072, GBP closed in NY Friday at $1.5360 after rate had seen post US NFP lows of $1.5279 before spiking to $1.5440 as market turned focus onto the possibility of QE3 based on the jobs data. Rate edged to early highs in Asia of $1.5377 before easing, the rate marking overnight lows at $1.5344 before settling between $1.5360/75 ahead of the European open. 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. UK closed Monday and Tuesday for the Jubilee celebrations has made for thin conditions in sterling trade. GBP traded with an underlying firm tone through the European morning, extending recovery to $1.5385, while the cross respected the earlier Asian range. No change widely expected at Thursday’s BOE rate decision, though a decision on more QE to be watched. PMI services data seen more prominent on this note. Fed Bernanke Thursday the key event for the week and any hint toward QE3.
EasyForexNews Research Team