Opened early Europe at $1.5802 stg0.8293 having extended its recovery off session lows of $1.5730 to $1.5841. Rate drifted off to $1.5805 in early Asian trade before recovering back, getting a kick up to $1.5832 into the RBA unchanged rate decision, as risk got a boost. However, AUD gains overtook and weighed back on sterling via the cross, with GBP dropping back to $1.5797 as it tracked EUR/USD sharper pullback. GBP was provided some buoyancy in the move as EUR/GBP dropped back from stg0.8300 to stg0.8285. GBP settled back between $1.5800/15 through the balance of the session and into Europe before coming under further pressure which extended lows to $1.5793 as the cross edged above stg0.83. GBP bounced back to $1.5833 before dropping to the $1.5800 area as the cross pushed to stg0.8319. GBP settled back around $1.5820 as the cross eased toward stg0.8300, getting a late morning lift to $1.5837 on order driven trade. Rate was trading around $1.5815 ahead of NY, the cross getting nudged below stg0.8300 on weak German IP data.
EasyForexNews Research Team