The pair closed in NY Friday near session highs of $1.5714. The rate pressed to $1.5628 after release of stronger than expected US PPI data and looked to re-test earlier session lows of $1.5616. Sharp dollar sales ahead of and through the London fix allowed rate to extend the recovery to $1.5700, consolidating into the close. Euro-sterling closed at stg0.8500, the cross recovered off pullback lows of stg0.8489 after earlier printing a high of stg0.8534. Cable opened firmer in Asia and lifted to highs of $1.5734, rate stalled meeting tech resistance from the 55-month ma before easing lower with euro-dollar to $1.5710. Fresh supply added further weight as cable extended the slow grind through $1.5700 and the 200-day ma to print lows of $1.5691. The rate sits heavy ahead of Europe with any bounces remaining shallow. Euro-sterling last at stg0.8489 after recovering off earlier lows of stg0.8481. In terms of data this week traders look ahead to release of UK CPI on Tuesday where the consensus is for 2.6%, up from 2.4% in April.
