Closed in NY Friday $1.6167 after getting pressed down from $1.6217 to $1.6114 on end of month fix flows. Rate had eased off to $1.6147 into early Asian trade, with early demand lifting rate to $1.6161 before turning lower on slight risk aversion caused by a negative opening in Asian equities. The move lower was led by euro-dollar, though as cable trailed the move allowed euro-sterling to ease from stg0.7962 to stg0.7942 before settling around stg0.7950. Cable found initial support at $1.6118 before getting a shove below the NY base to $1.6109, as market probed for stops. Buys emerged into the dip to allow rate to settle back around $1.6130. Friday’s much anticipated end month ECB fix saw decent sized two way flows which left the cross basically unmoved. However, traders suggest we could see some residual cross demand roll over into October trade. UK mfg PMI data is due for release at 0828GMT, with money supply following close behind at 0830GMT. A lot of Asian centres closed today could make for a subdued session, only US mfg ISM providing the major interest this afternoon at 1400GMT.
EasyForexNews Research Team