Closed in NY at $1.5520, rate recovered from pullback lows of $1.5485 in late trade. Cable ground higher in early Asian trade albeit stuck in a tight 30 pip range, before spiking sharply in tandem with EUR/USD to highs of $1.5628 as headlines from the EU summit began to hit the wires. The EFSF/ESM allowed to directly recapitalise banks seen as the main driver behind the move. The pair eased off highs on reported profit take sales, consolidated gains and settled at $1.5610 ahead of Europe. EUR/GBP spiked from stg0.8012 to stg0.8083 on release triggering a number of stops. GBP resistance seen at $1.5650/55 ($1.5651 – 26 Jun high), a break to $1.5670/75. EUR/GBP offers reported into stg0.8090. With all action on the euro this week and lack of UK data sterling has taken a back seat watching from the sidelines, expect more of the same today in headline driven markets
EasyForexNews Research Team