Closed in NY Friday at $1.5693, just off traded lows at $1.5690. Rate had seen a sharp sell off Friday, the move driven by a resurgent euro-sterling, the cross pressured up to stg0.8711 as the euro was boosted post US NFP in a risk appetite rally, while sterling remained an outsider to risk benefits. Cable remained under pressure into early Asia, extending lows to $1.5683 before recovering, the underlying bearish tone remaining in place as rate settled between $1.5695/10 through to the European open. Euro-sterling recovered from its NY close at stg0.8688 to stg0.8704 in early Asia before it turned lower, the rate settling between stg0.8674/84 through the Asian afternoon and into Europe. UK construction PMI provides the early domestic data interest (0930GMT) though activity in the euro likely to be the main driver. Focus thios week on the BOE MPC meeting Thursday, though most expect no change in rates nor QE, though an increase in the latter not ruled out in later meetings this year. Of more interest will be new BOE Governor Carney’s appearance before the TSC Thursday to gauge direction he will take the Bank. Cable support $1.5685/80, $1.5650. Resistance$1.5710/20.
EasyForexNews Research Team