The pair closed in NY at $1.5233 after rate had trailed euro-dollar’s stronger recovery, moving up from around $1.5111 to a high of $1.5238 before easing slightly into the close. Disappointing US weekly jobless claims and a slight downside revision to headline US Q1 GDP data prompted another round of dollar sales, with traders aware that most end month models predict dollar sales to be seen at today’s fixings. Cable was able to play catch up on the euro-dollar move in NY, which in turn allowed the cross to ease off intraday highs of stg0.8599 to settle between stg0.8560/70 into the NY close. Early demand into Asia allowed rate to extend its recovery to $1.5240 before it drifted off to $1.5216 into the Asian afternoon, settling between $1.5218/28 ahead of the European open. the cross was contained within a relatively tight stg0.8562/70 range. UK lending/money supply data due at 0830GMT as well as end month flows expected to dominate action. Euro-sterling often sees decent demand into month end but this may be tempered by expected dollar sales.
