Opened early Europe at $1.5695, stg0.7872, GBP 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 to $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. Continued unwinding of euro-cross shorts saw EUR/GBP push up to stg0.7980, as GBP initially met resistance ahead of $1.5710, the eventual break taking it on to retest Monday highs at $1.5717. GBP slipped to $1.5705, the cross edging to stg0.7885 ahead of UK CPI data, the stronger than forecast headline number prompting buyers to take cable on to $1.5730 (Jul 31 high), while relieving upside pressure on the cross. GBP tracked EUR/USD slippage off its highs, with reserve sales taking it back below $1.5700 late Europe morning.
EasyForexNews Research Team