Closed in NY Friday at $1.5690 after spiking back from a low of $1.5570 to $1.5701. Rate consolidated this correction with trade through Asia contained within a relatively tight $1.5562/84 range, opening Europe around $1.5572. EUR/GBP opened Asia around stg0.7840 and tracked EUR/USD early move lower, retesting Friday’s lows at stg0.78285 before edging back to stg0.7847 and holding around stg0.7845 into Europe. Trade through the overnight Asian session was described as fairly subdued, with O-Bon holidays in Japan (affecting corporate activity). Nothing of note on today’s domestic UK calendar with the global calendar seen fairly light. BOE Minutes from the last MPC meeting the highlight of the week on Wednesday to gauge the thinking toward the timing of anticipated expansion of QE. GBP demand seen at $1.5660/50, a break to allow for a deeper move toward $1.5635/30 ahead of $1.5600. Resistance $1.5686/91, a break to open a retest on $1.5700/10. EUR/GBP demand remains at stg0.7830/25, with stronger interest at stg0.7805/00. Resistance stg0.7870/80.
EasyForexNews Research Team