GBP closed in NY at $1.5783 and initially edged 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 $1.5796 before Europe provided the added push to take it on to $1.5816. Rate eased off highs, in line with EUR/USD reversal, with downside momentum added to as an Asian sovereign took rate down to $1.5770. EUR/USD rallied to stg0.84065, having been held between stg0.8379/88 in Asia, after easing off NY highs of stg0.8403. GBP extended lows to $1.5760/55 ahead of BOE Minutes release. A more dovish outcome than expected, with Miles joining Posen in voting for a QE extension of stg75bln versus main vote for stg50bln, saw cable trigger stops through $1.5755, with the break of stg0.8410, then stg0.8425, in the cross taking cable to eventual lows of $1.5696 (100-dma). EUR/GBP edged to stg0.8433 but traders were still seen fading the rally. Cable recovery was seen struggling to clear above $1.5720 ahead of NY.
EasyForexNews Research Team