Closed in NY at $1.5663, off session extended rally highs of $1.5700. Rate marked overnight lows into early Asian dealing at $1.5660 before picking up fresh demand which allowed rate to track ERU/USD early rise to $1.5684. However, GBP proved to be a laggard in comparison, with EUR/GBP able to extend its recovery off Tuesday lows of stg0.8340, from its Asia opening lows of stg0.8350 moving through to stg0.8375. A weak GfK UK consumer confidence number overnight only provided a slight knock to the recent sterling positive sentiment. Focus today turns to the release of BOE Minutes though most expect the decisions to keep rates/QE unchanged to have been unanimous. Late Tuesday Moody’s said the UK faces challenges but gets “high scores”. The comment came from Moody’s annual credit report on the UK and is not a ratings action. Offers remain in place to $1.5700, a break to open a move on toward $1.5730/35 ahead of $1.5770/80. Support seen at the overnight low of $1.5660, with stronger interest seen into $1.5640. Stops below this level to expose $1.5620.
EasyForexNews Research Team