Opened early Europe at $1.5675, stg0.8033, GBP closed in NY $1.5685, off European recovery highs of $1.5708. Rate recovered in early Asia, the rate posting highs at $1.5690 before turning lower and tracking EUR/USD slippage to $1.5667. Rate settled between $1.5667-80 through the balance of a generally subdued session, due to today’s NY holiday, with focus set on Thursday’s BOE and ECB rate decisions and Friday’s US pay rolls report. EUR/GBP in Asia was confined to a relatively tight stg0.8028/38 range leaving cable to track EUR/USD moves. Sterling came under pressure in Europe, the break below $1.5640 triggering stops which took rate to extended lows of $1.5630 ahead of UK services PMI release. Data came in at forecast level (and pre release whisper level) with profit take buying countering any triggered sales which took rate back above $1.5650 at the close of European morning trade. Attention in sterling markets will turn to former Barclays CEO Bob Diamond’s testimony to TSC at 1300GMT. Trade in general seen fairly subdued into today’s US July 4th holiday.
EasyForexNews Research Team