Opened early Europe at $1.5630, stg0.8060, closed in NY at $1.5520, rate recovered from pullback lows of $1.5485 in late dealings. 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 and settled at $1.5610 ahead of Europe. EUR/GBP spiked from stg0.8012 to stg0.8083 on release triggering a number of stops. Cable opened on a bid tone in early European trade, demand from model names boosted to $1.5679, before meeting Middle-Eastern supply. The pair ground lower throughout the session as month end flow seen light, sales from real money accounts added weight and the pair pressed through $1.5600 to print $1.5598 ahead of NY. EUR/GBP was contained in a tight stg0.8036 – stg0.8070 range tracking EUR/USD moves.
EasyForexNews Research Team