Opened early Europe at $1.5664 stg0.8328 GBP closed in NY at $1.5675, off pullback lows of $1.5648 after rate had seen highs earlier in the day of $1.5775. Despite the pullback, which was seen led by EUR/USD sharp reversal off its post LTRO spike highs, GBP enjoyed some buoyancy as EUR/GBP managed to extend its recent pullback to stg0.8302. The cross in Asia traded off those lows, contained within a relatively tight stg0.8322/275 range. Early demand for EUROs saw EUR/USD break out on the topside of its overnight range, though cable’s attempted rally remained stalled below $1.5683 (Asia range $1.5656/83) allowing the cross to push up to stg0.8344. The break of $1.5685 took rate above $1.5700 and on to $1.5729. GBP eased back to $1.5700 into UK GDP release, the better than expected number outweighed by the sharp increase in the current account deficit. However, GBP found support at $1.5680/70 which cushioned the react while the cross pressed back below the Asian base to stg0.83135.
EasyForexNews Research Team