Opened early Europe at $1.5652, stg0.7849, GBP closed in NY at $1.5648 after rate had recovered through the NY session from lows of $1.5582 to $1.5659. Rate continued to drift away from those recovery highs into early Asia, finding a base at $1.5645 before picking up fresh demand that lifted it back to retest the NY high. Another pullback to $1.5645 saw stronger demand emerge to take rate on to $1.5667, falling just short of Tuesday highs at $1.5668. Rate eased off this high, finding support at $1.5650, opening Europe around $1.5653. EUR/GBP traded a familiar range around stg0.7850 through Asia, leaving cable to track EUR/USD moves. Early Europe EUR/USD short squeeze saw cable spike up to $1.5694, as EUR/USD moved above $1.23, only to drop in tandem as strong selling emerged at $1.2320/25. GBP squeezed to $1.5665, dropping again to $1.5645 on the initial reaction to release of weaker than forecast UK retail sales. Second wave sales, along with deeper EUR/USD slippage, extended move to $1.5637 where it met strong UK clearer demand before edging back above $1.5660.
EasyForexNews Research Team