The pair closed in NY Friday at $1.6483 after rate had pulled back from an earlier high of $1.6577 to $1.6459 in thin flow driven trade. Rate squeezed back to $1.6468 in early Asian dealing, trading around $1.6470 before fresh demand emerged as the major centres began to open. Cable pushed to a session high of $1.6500 before momentum faded and rate eased its way back to the earlier lows of $1.6468 then settled around $1.6475 ahead of the European open. Offers remain in placed between $1.6500/05, a break to open a move toward $1.6520 with further resistance seen at $1.6530/35, $1.6550 ahead of Friday’s high, with barrier interest noted at $1.6600 behind. Support seen at $1.6468-59 (Asia-NY pullback lows), a break to open a deeper move toward $1.6450/45 with stops placed below. Further demand seen into $1.6405/00. Euro-sterling trade in Asia was contained within a range of stg0.83365-0.83505 with rate favouring toward the base into Europe. Markets expected to remain thin due to staffholidays into New Year Wednesday with customer flows providing the main drive. UK mfg PMI the domestic highlight for the week on Thursday, with construction PMI set for Friday release.
