Opened early Europe at $1.5322 stg0.8300 GBP closed in NY at $1.5330, the rate having recovered off traded lows of $1.5308. Rate consolidated its Wednesday sell off with trade
through Asia contained by $1.5310/35, trading toward the upper end of this range into early Europe. EUR/GBP extended its corrective recovery back above stg0.83 and was seen providing a counter weight to GBP. The cross extended recovery to stg0.8306 in Asia (NY stg0.8296), off recent lows at stg0.8222 (Jan9). GBP came under early pressure into Europe, the barrier at $1.5300 giving way on leveraged selling, with funds adding weigh to take it down to $1.5279. EUR/GBP edged back above stg0.8300, disregarding talk of UK corp sell interest, with German corp demand overwhelming as rate moved up to stg0.8320. GBP recovered as the cross was pressed back toward stg0.8300, with middle east demand then emerging to take it on to $1.5350. EUR/GBP retained a firm tone in late morning, aided by general strength in the EUR. GBP remained firm after BOE left rate/QE unchanged.
EasyForexNews Research Team