Closed in NY at $1.5524 after rate had been pressed to lows of $1.5500 during Thursday’s session following the BOE expanding QE by
stg50bln but more effect seen from the ECB cutting rates by 25bps as well as growth concerns voiced by ECB Draghi. However, the euro took the brunt of the sell off with EUR/GBP trading down to stg0.7965 diverting some of the pressure and provided buoyancy above $1.5500. Trade through Asia was contained within a tight $1.5518/34 range, opening Europe around $1.5528. The cross traded through Asia between stg0.7974-0.79825. Trade through Asia was generally subdued as attention now turns to this afternoon’s key US employment report, with some forecasters moving up their views following better employment component in the non-mfg ISM and the better than forecast ADP data Thursday. Support remains into $1.550, a break to open a deeper move toward $1.5470 with bids seen from this level into $1.5450. Resistance $1.5530/35 ahead of $1.5450/55 with stops above. UK PPI due for release at 0830GMT but US jobs data to overshadow on the day.
EasyForexNews Research Team