The pair closed in NY Monday at $1.6161 after rate had been sold to lows of $1.6134, having seen highs earlier in the day at $1.6241. Sterling came under pressure through Monday on a mix of position adjustment, ahead of today’s BOE/TSC meeting, with GDP due Wednesday. This, along with a general dollar correction, helped to press cable lower, with the cross pushing up to stg0.8374 in NY, from earlier lows around stg0.8341, the move aided by expected end of month demand for euro-sterling. Cable’s late recovery was seen as the dollar pared back some of its recovery gains, led by an easing in dollar-yen. This upside correction in cable extended into early Asia, the rate pushing on to $1.6174 ($1.6175 38.2% $1.6241-1.6134) as dollar-yen continued to squeeze lower. As dollar-yen met support so cable reversed and eased to session lows of $1.6147 before settling around $1.6150 into Europe. Euro-sterling marked lows atstg0.8358 in opening Asian trade before pushing higher again, the rate edging to a session high of stg0.83785 and was holding firm ahead of the European open. Offers are seen into stg0.8380 ahead of stg0.8400 and stg0.8415/20. Support stg0.8345/40. Cable support $1.6135/30, $1.6110/00. Offers $1.6175, $1.6190/00.
