The pair closed in NY Friday at $1.5169, just off session lows of $1.5158. Recovery extended into Asia, the rate able to edge to $1.5202 before it got sold back to $1.5166 as yen spiked higher on the back of Tokyo reaction to Amari comments ‘yen strength has been largely corrected’. However, buyers quickly emerged in yen crosses to take advantage of the dip which allowed cable to edge back above $1.52 and onto $1.5207. Rate dipped to $1.5188 but had settled back around $1.5200 into Europe. Euro-sterling, which had seen recovery highs of stg0.8461 in NY, off session lows of stg0.8430 (Thursday lows stg0.8420), consolidated this correction between stg0.8447/59 through Asia, opening Europe at stg0.8455. A light UK domestic data calendar with focus this week on Tuesday CPI, MPC Minutes Wednesday (no change expected in the 9-0 rates unchanged, 6-3 for QE unchanged). Retail sales and Q1 GDP second reading due Thursday. Cable demand remains in place on approach to $1.5150, more between $1.5130/20. Resistance $1.5210/20, $1.5250, $1.5260/65.
