Closed in NY at $1.5638 after rate recovered off a retest on intraday lows of $1.5606, having seen highs earlier in the day at
$1.56878 (Asia, Europe $1.5685). Rate traded lower in Asia, the rate stepping its way to a low of $1.5618 before settling between $1.5620/30 in a fairly quiet session, most moves coming from the Aussie dollar as it reacted initially to the RBA Report, warning that the strong currency could have detrimental effects on future growth, then release of weaker than forecast China trade data. GBP opens Europe around $1.5623. EUR/GBP consolidated its extended corrective pullback to stg0.78565 (NY low), with trade through Asia contained within stg0.78635/0.7871. UK PPI at 0830GMT to provide this morning’s domestic data interest. As has been seen of late, poor economic performance in the UK appears to be already priced in with positive surprises to provide a better react. GBP demand remains in place into $1.5600, a break to open a deeper move toward recent lows at $1.5573 ahead of $1.5565/45. Resistance remains between $1.5645/50 ahead $1.5685/00.
EasyForexNews Research Team