Closed in NY at $1.5690, after pulling back from extended highs of $1.5735 to $1.5669. Rate initially edged higher in Asia, marking a recovery high at $1.5698 before turning lower as yen crosses came under pressure into the Tokyo fix. GBP pressed to an overnight low of $1.5661 before recovering to $1.5685, then settled between $1.5665/85 through into the European open. Rate currently trades around $1.5680. EUR/GBP, which had been pressured to a recovery high of stg0.8399 ahead of the Thursday’s London fix, dropped back to stg0.8349 after, with trade in Asia contained within a range of stg0.8344/64. No domestic data in the UK so attention will be turned toward the ongoing Greek debt talks, with headline driven trade expected to dominate through the day as we await speakers from Davos (ECB Draghi at 1315GMT) and key US GDP at 1330GMT. Fed’s Dudley, seen as a Fed focus by some, speaks later at 1500GMT. GBP bids remain in place to $1.5660, with stronger interest noted extending toward $1.5650 ($1.5651 Jan26 low). A break to open a
deeper move toward $1.5630/20. Resistance $1.5700, $1.5720 then $1.5735.
EasyForexNews Research Team