Opened in Asia at $1.5693 after lows in NY of $1.5645, tracking the euro weakness and also coming under some pressure from macro sellers from around midday as well as some model buying in EUR/GBP. Some risk then re-emerged towards the end of the NY session as reports came in that Greece’s Samaras would be signing the austerity pledge which led a euro recovery and in turn prompted some short covering in the cable back towards $1.5700. Asia saw a small dip to $1.5675 this morning before comments from China PBOC’s Zhou supporting EU efforts led a risk rally to $1.5720. The move was however hampered by gains in EUR/GBP from stg0.8262 to stg0.8379. There are offers in cable up at $1.5730/50 with bids towards $1.5670/80 and larger towards $1.5645/50. EUR/GBP faces resistance at stg0.8380 and stg0.8400 with support at stg0.8355/60 and stg0.8335/40. Focus this morning will be on the UK Dec average earnings and unemployment data at 0930GMT ahead of the EU Q4 GDP and Dec Trade data at 1000GMT
EasyForexNews Research Team