The pair closed in NY Monday at $1.5968 after rate had recovered through the day off earlier Asian lows of $1.5904 to $1.5980 before easing off into the close. The recovery was given a boost by the release of stronger than forecast UK construction data, with traders turning attention to today’s release of key services PMI at 0928GMT. Cable extended its corrective pullback to $1.5963 in opening Asian trade before recovering back, demand able to lift rate through Monday’s high and on to $1.5983 before momentum faded. Rate then eased off, settling between $1.5960/75 ahead of the European open. Euro-sterling had eased off its NY highs of stg0.8477 into the close at stg0.8465 with early Asia extending this move to stg0.84495 as market reacted to returning Tokyo market sales of euro-yen which weighed on the single currency across the board. Rate was holding heavy into the European open, supported by demand placed between stg0.8450/40. Stops have been reported below this area. Resistance remains at stg0.8480. For cable, offers remain at $1.5980/85, more toward $1.6000. Support $1.5950, stronger between $1.5910/00, with a break of $1.5890 to negate recent underlying positive tone.
