Closed in NY at $1.5552, off late recovery highs of $1.5564 as rate took direction from the EUR/USD moves, with risk gaining a general boost on the back of reports suggesting G20 were preparing for coordinated action to provide liquidity to markets if needed after the Greek election on Sunday. Rate continued the corrective pullback in Asia, touching a low of $1.5537 before edging higher again, aided by EUR/USD rally and with Asian equities paring early losses to move into positive territory. Rate edged to a high of $1.5557, though gains were seen hampered as EUR/GBP extended its recovery through the NY high of stg0.8120 to stg0.8132. Cable was trading around $1.5550 into early Europe, the cross holding firm at stg0.8130. Last night’s Mansion House speech, where BOE King mentioned that the case for further monetary easing is growing, is awaiting London reaction, though in a morning note from UBS they suggest that the pro-growth positives from credit proposals are seen counterbalanced by the currency negative effect of QE expansion. Offers into $1.5570, stronger toward $1.5600.
EasyForexNews Research Team