Opened early Europe at $1.5587, stg0.8043, GBP closed Friday’s NY session at $1.5575, before getting pressed to early lows in Asia of $1.5551, as the cross spiked to stg0.8076 from its NY close of stg0.8060, before bouncing to $1.5595 then settling between $1.5575/90 through the balance of the session. EUR/GBP eased off that early high, trading down to stg0.80365 and was holding heavy into Europe. EUR/USD came under heavy sell interest into Europe and took the cross to extended lows of stg0.8026, the move providing some early buoyancy for cable before it too tracked the EUR/USD move. Cable retested the overnight low at $1.5551, breaking below to extend the base to $1.5541, as the cross edged back to stg0.8040. Late morning euro sales, instigated by a EUR/JPY sell off, saw the cross ease back toward early lows, with cable dragged back from its recovery highs of $1.5570 to $1.5550 (21-dma). Next support seen at $1.5525/20, the $1.5523 level being the 50% retrace of the recovery from $1.5269 to 1.5778. EUR/USD moves continue to provide direction.
EasyForexNews Research Team