The pair closed in NY Thursday at $1.6367 after rate had managed to recover off extended corrective pullback lows of $1.6335 to $1.6390 before it drifted lower into the close. Rate marked early highs in Asia at $1.6390 before turning lower again, the rate meeting demand placed into $1.6350 which based the move at $1.6352. Recovery met resistance from offers placed between $1.6370/75 ($1.6371-75 50%-61.8% $1.6390-52)before turning lower again into the Asian afternoon, with the break higher in dollar-yen above Y104.50 prompting dollar demand across the board which has seen cable ease back to retest earlier lows ahead of the European open. Euro-sterling trade was confined to a stg0.8331/0.83465 range with rate favouring the lower end into Europe. UK public borrowing data and the Q3 GDP third reading due at 0930GMT, ahead of BOE Haldane speaking at 1100GMT, provides the morning’s interest. Sterling retains an underlying buoyant tone with most expecting the pound to make further gains versus the euro.
