The pair closed in NY Friday at $1.6418 after rate had been pressed lower through the day to lows of $1.6495, recovered to $1.6444 before drifting off into the end of the week. Rate squeezed lower into early Asian trade, retested Friday’s low but reported stops sub $1.6390 remained intact as rate recovered off an early low of $1.6392. Rate recovered to $1.6420 into Tokyo’s 2014 open but strong yen demand at the Tokyo fix, with the Nikkei pressed lower into its open, weighed back on dollar-yen and yen crosses, with sales of sterling-yen cited as cable reversed tack and broke below $1.6390. Triggered stops added further weight in low liquidity trade, with rate touchingan initial low of $1.6352 before it was able to nudge back to $1.6370. However, reported stops sub $1.6350 then provided further downside attraction as rate extended lows to $1.6348 before rate settled back around $1.6360 ahead of the European open. Euro-sterling, which had seen extended pullback lows of stg0.8277 Friday, as euro slippage led moves, recovered in Asia as cable played catch-up, the cross pushing up from lows of stg0.8280 to 0.8307 but had eased back below stg0.8300 ahead of the European open. UK services PMI at 0928GMT in focus.
