Closed in NY at $1.5712 after rate had seen a volatile day as BOE Governor in wait Carney came across less dovish than market had positioned for. Rate had spiked to $1.5768 on opening headlines before drifting lower, with the afternoon comments from ECB Draghi mentioning current euro strength adding to weight as cable tracked euro-dollar’s sharp sell off. Cable traded to a low of $1.5684 before recovering through the US afternoon into the close. This cable buoyancy was seen as euro-sterling broke lower, the cross pressed to lows of stg0.8516, having seen highs earlier in the day of stg0.86645 ahead of Carney comments. This recovery in cable continued into Asia, the rate marking early lows at $1.5706 before pushing on to $1.5738 ($1.5736 61.8% $1.5768-1.5684), Rate opens Europe around $1.5728. Offers now seen from $1.5738 through to $1.5750 ($1.5748 76.4%), a break to expose that $1.5768 high. Support $1.5700 ahead of $1.5685/80. Euro-sterling consolidated Thursday’s pullback between stg0.8516-33 in Asia, opening Europe at stg0.8520. Continued fall out from Thursday’s Draghi comments, along with any commentary out of the EU budget negotiations, to provide drive.
EasyForexNews Research Team