The pair closed in NY Monday at $1.6307 after rate had extended its corrective pullback to $1.6291 with pressure on sterling through the day seen after the release of weaker than forecast UK mfg PMI data, though residual month euro-sterling demand provided the main weight. The cross was driven to a recovery high of stg0.83015, having seen lows Friday of stg0.8188, the rate closing the day around stg0.8295. Cable consolidated Monday’s losses in early Asian trade, the rate contained within a range of $1.6300/15 before breaking lower into the Asian afternoon, easing below Monday’s low of $1.6291 to $1.6283. Moves were again driven by the cross as euro-sterling initially extended its corrective pullback to stg0.82835 before bouncing back to stg0.8297. Cable was able to recover off lows, but was holding just off $1.6300 into Europe. UKconstruction PMI at 0930GMT provides the morning’s domestic interest. Risk aversion, with a continued move out of EM, provides the main drive, with yen’s recovery being watched. Cable demand seen into $1.6280, more into $1.6260 with further demand seen extending into $1.6250. Resistance into $1.6300, a break to open a move toward $1.6315/25 ahead of $1.6335 and $1.6350. Related News
