We’ve been off almost 40 pips from the Asian highs of 0.7977, to lows around 0.7940 in Europe this morning, and there’s plenty of market talk surrounding the recent move down this week.
Firstly the well touted single farm subsidy which Brussels has to pay to the UK farmers, and this is supposedly worth around 3.5 bln euros. A UK clearer has the deal and the rate’s said to be determined at Friday’s ECB fix or Friday close, but on the flipside, the usual month-end rumours of BUBA demand are doing the rounds again on the bush telegraph.
Another factor has been talk of an HSBC quarterly dividend payment which has apparently kept the cable perky, which has also weighed on EUR/GBP
The cross is currently just off the day’s lows around 0.7944 with GBP/USD at day’s highs around 1.6264