GBP traded on an easier footing as equity markets experienced profit taking during the Asian afternoon. Cable traded in to 1.6355 versus an overnight high of 1.6437, which was below Wednesday's1.6468 peak. The easier Cable tone enabled EUR-GBP to trade back in to the 0.8600 area and GBP-JPY traded back in to 153.40. Cable stops are anticipated under 1.6320 and 1.6200, while offers are now seen above 1.6400 and towards 1.6440. Equity market movement is expected to dominate the broad picture, with the local market tending to shrug off comments from BoE. The latest remarks came from BoE's Barker, who said that she wouldn't have expected to see improvement on bank lending yet from the asset purchase program. News that CIT is facing bankruptcy should temper risk appetite early on, but the focus will tend to come from earnings reports from JPMorgan, Google and IBM later today.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
