New York traders look to have put a decent offer on pound sterling.
The British pound was sold widely as U.S. markets came into play on Thursday, October 23.
The pound to euro exchange rate - the most active deliverable sterling pair - was steady just above 1.15 New York walked in, but shifted down to 1.1465 in the first half hour of U.S. trade.
Timezones can sometimes have significant impacts on interday currency action; in fact, a cursory look at the data shows the pound-euro has fallen in the first half hour of U.S. trade in five of the past six sessions.
Thursday's NY selloff is particularly notable, and unfortunately, there is no clear narrative to affix to the selling pressure.
Weakness is not necessarily specific to GBP/EUR, but could be driven by specific interest in another GBP pair, for example, selling in GBP/USD that outpaces sales of EUR/USD.
Recurring intraday behaviour such as this can often reflect time-zone-specific order flow and positioning. Those who are on the lookout for these quirks in FX markets can often walk away with some pretty profits.
To be clear, I am not suggesting this pattern is a cast in iron play for the coming days, rather it's something I've picked up that offers a little interest in an otherwise pretty staid FX environment.
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