Opened early Europe at $1.5625, stg0.7867, GBP 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. EUR/GBP consolidated its extended corrective pullback to stg0.78565 (NY low), with trade through Asia contained within stg0.78635/0.7871. Risk positions continued to be pressured into Europe, GBP eventually managed to break under $1.5600, with triggered stops taking it down to $1.5578. Bids quickly emerged to take rate back to $1.5600, but offers here eased rate to $1.5586 into PPI release. Minimal reaction to the data, but rate slowly edged back to $1.5600, edging to $1.5609 after filling clearer offers at the figure.
EasyForexNews Research Team