Closed in NY at $1.5900, just off its recovery highs of $1.5906 seen as rate was pulled higher by EUR/USD stronger rally as market reacted to reports that a Greek debt deal was close to conclusion. This lagging in cable had allowed EUR/GBP to push to a high of stg0.8353 in late Europe, with a failure during the NY afternoon to build allowing the cable catch-up. Rate consolidated these gains through the main part of the Asian session, trade restricted to a range of $1.5888/1.5900 before picking up fresh demand ahead of the European open
that took rate on to an extended high of $1.5919. Rate so far holds above $1.5900 on the corrective pullback, but rate seen tracking EUR/USD while the cross holds within its overnight range of stg0.8332/47, currently around stg0.8344. Greek debt deal developments will remain in the driving seat for direction during the day, with some focus turning to Thursday’s rate decisions from the BOE and ECB. GBP offers seen now to $1.5920, stronger around $1.5930 ($1.5931 Nov15 2011 high) with more into $1.5950. Support $1.5895/85, stops below $1.5880.
EasyForexNews Research Team