The pair closed in NY Friday at $1.6226, just about at session highs as rate continued to build on its recovery off Thursday lows of $1.6072. The positive move extended into early Asia with rate moving on to a high of $1.6241, but held shy of retesting October highs in the area between $1.6248 through to $1.6260. Decent sell interest has been noted in this area, a break to expose a move on to 2013 highs of $1.6381 (Feb1). However, the early positive tone faltered and allowed rate to ease lower, the initial move meeting support into $1.6220 before bouncing back to $1.6233. Strong demand for dollar-yen led to dollar demand across the board and pressed cable through the earlier pullback lows and on to $1.6207 with rate holding heavy into Europe. Demand is seenplaced into $1.6200, a break to open a deeper move toward $1.6180/70 ($1.6176 38.2% $1.6072-1.6241) ahead of $1.6150. Euro-sterling was contained within a tight stg0.83455-0.83525 range through Asia leaving cable to track euro-dollar moves. BBA home loans data at 0930GMT provides the domestic interest this morning in an otherwise data light day.
