Closed in NY at $1.5783 and initially edged up to $1.5793 in early Asian dealing before easing back to mark lows at $1.5764 as it tracked EUR/USD moves. Rate recovered, stepping its way to $21.5796 before Europe provided the added push to take it on to $1.5801. Rate currently trades around $1.5791. Cross plays were the main drivers in Asian trade, with similar expected to occur in Europe, though trading volumes are down on usual levels leaving rates open to volatile, order driven moves. Offers seen placed around $1.5810, a break to expose Tuesday’s NY high at $1.5826. Support $1.5775/70 ahead of the overnight Asian low at $1.5764. BOE MPC Minutes the highlight this morning, the split in the vote for the stg50bln increase in QE expected to be 9-0, possibly 8-1 with Posen voting for stg75bln. EUR/GBP hit an extend high of stg0.8403 in NY Tuesday, as stops above the figure were targeted, but market remains in favour of fading rallies to this area, currently trading around stg0.8385 after holding a tight stg0.83795/0.8388 range through Asia.
EasyForexNews Research Team