The pair closed in NY Friday at $1.5926, the rate recovering off a late low of $1.5908, which was seen as the rate tracked deeper euro-dollar slippage and euro-sterling recovered off its session low of stg0.8445 to stg0.8476 (closing NY at stg0.8470). Cable consolidated between $1.5920/35 in early, holiday thinned (Japan holiday, Dehwali), Asian trade before dropping down to $1.5904 as it again took direction from euro-dollar. The move lower in euro-dollar was seen on an unwinding of euro-Aussie longs, following the release of strong Australian retail sales data, though the move in this rate also weighed back on the cross as it eased to stg0.84525 (from highs of stg0.84725) which in part helped to cushion cable ahead of $1.5900. Cable settled back between $1.5920/35, the cross between stg0.8450/70 ahead of the European open. Eurozone mfg PMI data for release this morning and could influence via thecross, with UK construction PMI providing the main domestic interest during the morning. Focus this weeks turns to Thursday’s ECB rate decision, following the recent release of soft EZ inflation data, with US NFP following on Friday. Cable bids $1.5900, $1.5850. Offers $1.5950, $1.5975/80, $1.6000.
