Opened early Europe at $1.5528, stg0.7808, GBP closed in NY at $1.5510, off late recovery highs of $1.5532 after rate had seen lows on the day of $1.5486. GBP moves during the session were seen mainly driven by EUR/GBP as the cross recovered from recently posted 44-month lows at stg0.7756, edging to stg0.7825 before consolidating this move in Asia between stg0.78075-0.7817. Cable in Asia was contained by $1.5509/36, holding just under $1.5530 into early Europe. Cable initially got squeezed to extended lows of $1.5505 in early Europe, recovering to $1.5520/25 as EUR/GBP extended pullback lows to stg0.78045. General euro recovery lifted the cross back toward the overnight high, which in turn took cable below $1.5500, with sales of GBP/CAD providing the added weight to take it down to $1.5487, as the cross extended highs to stg0.7821. A sharp pullback in the cross to stg0.7810/05 allowed cable to recover back above $1.5500 but the underlying tone remained heavy with market said to have sights on Wednesday’s release of UK Q2 GDP data.
EasyForexNews Research Team