Closed in NY Friday at $1.5748 after rate had recovered from earlier Asian lows of $1.5666 to $1.5768. Rate touched an early high into Asia of $1.5750 before turning lower in tandem with EUR/USD, the rate squeezing to an eventual low of $1.5712 before settling around $1.5720 into the European open. EUR/GBP, which had experienced volatile swings on Friday, trading to a low of stg0.7800 on fix related flow before spiking up to stg0.7873, closing the week around stg0.7820. The rate in Asia saw an early low of stg0.7807 before recovering to stg0.7827 then settling around stg0.7820. Mortgage approvals at 0830GMT and CBI distributive trades at 1000GMT provide the domestic interest today though Thursday’s BOE rate decision, no changes expected, and UK PMI’s will provide the main home interest. ECB rate decision Thursday and US non-farm payrolls seen key external interest. S&P affirmed the UK’s AAA rating Friday, keeping the outlook stable. Bids seen placed between $1.5710/00, a break of $1.5690 to open a deeper move toward $1.5675/65 ahead of $1.5650. Resistance $1.5750/55 ahead of $1.5768.
EasyForexNews Research Team