Closed in NY at $1.5603 after rate had corrected back from recovery highs of $1.5643. The correction continued into Asia with rate
slipping to an early low of $1.5578. Rate then settled between $1.5580/95 ahead of the European open, pressing on $1.5580 in early trade. EUR/GBP consolidated Monday’s rally to stg0.7962, holding between stg0.7946/59, opening around stg0.7950 into Europe. The pound continues to trade with a softer tone as market adjusts positions ahead of Wednesday’s key BOE Inflation Report with most expecting a dovish tone from BOE King. GBP demand seen into $1.5570 (76.4% $1.5547-1.5643), a break to expose Monday’s low at $1.5547. Bids noted into $1.5545 with stops placed on a break of $1.5540. Resistance $1.5640/50. The cross expected to retain the lead, with offers noted into stg0.7965/70, a break to open a move toward stg0.8000. Bids in the cross seen at stg0.7945/40 ahead of stg0.7920. UK industrial/mfg output data due for release at 0830GMT will provide this morning’s interest. US calendar again seen light.
EasyForexNews Research Team