Opened early Europe at $1.5568, stg0.7860, GBP closed in NY at $1.5573, after tracking EUR/USD NY rally, extending its recovery off session lows of $1.5414 (Europe-Thursday low of $1.5393). Early demand into a Tokyo holiday thinned market saw rate extend move to $1.5594 before upside momentum faltered and rate drifted lower in tandem with EUR/USD to a low of $1.5566, with recovery attempts capped at $1.5575. EUR/GBP was contained within a range of stg0.7858/74 through Asia, as it consolidated Friday’s squeeze to stg0.7857. Release overnight of weak Rightmove house price data, as well as the Ernst and Young ITEM club lowering growth forecasts for the UK this year, did little to dent sterling, with good demand for cable noted overnight. Early pressure on the euro took the cross to extended lows of stg0.7855, providing cable with some buoyancy as it too drifted lower, with further euro weakness allowing the cross to take out the barrier at stg0.7850, whilst cable reluctantly squeezed to lows of $1.5518.
EasyForexNews Research Team