Opened early Europe at $1.5527, stg0.7973, GBP closed in NY at $1.5524 after rate had been pressed to lows of $1.5500 during Thursday’s session following BOE QE expansion, but more effect seen from the ECB cutting rates by 25bps, as well as growth concerns voiced by ECB Draghi. The EURO took the brunt of the negative react with EUR/GBP trading down to stg0.7965 diverting some of the pressure which provided buoyancy in cable above $1.5500. Trade through Asia was contained within a tight $1.5518/34 range. The cross traded through Asia between stg0.7974-0.79825. Sterling came under pressure in early Europe, cable extending intraday lows to $1.5506, while the cross edged back to stg0.7980 area. However, middle eastern and corporate buyers emerged into the cable dip, while the cross again met decent supply above stg0.7980, taking cable up to extended highs of $1.5551 while the cross extended lows to stg0.79615. Attention into the afternoon will turn to the key US jobs report with traders suggesting a neutral react should headline number comes in between 90k-125k.
EasyForexNews Research Team