Closed in NY at $1.5684 after pulling back from a late Europe high of $1.5717. Rate pressed on support at $1.5680 into early Asia,
eventually breaking below, as it tracked early EUR/USD slippage (prompted by Tokyo EUR/JPY sales), trading to a low of $1.5675. Rate bounced in line with EUR/USD, met resistance at $1.5696 before easing back to $1.5682. Fresh demand allowed rate to step its way to an extended recovery high of $1.5698, with rate holding firm into Europe. EUR/GBP was held within a relatively tight range of stg0.78635-0.78755 which allowed cable to track EUR/USD moves. UK inflation data at 0830GMT provides the domestic focus this morning, with market consensus looking for a headline release of 2.3%, though some suggest CPI could have fallen to 2.2% keeping open speculation for an expansion in QE. Eurozone GDP releases through the morning also to effect trade. Cable offers seen into $1.5700, with further interest noted to $1.5707 (76.4% $1.5717-1.5675), a break here to open a move toward $1.5717, the 200-dma close behind at $1.5722. Bids $1.5675/70.
EasyForexNews Research Team