The pair closed in NY Thursday at $1.6656 after rate had extended its post BOE QIR rally, from $1.6426, to $1.6675. Rate pulled back to $1.6622 in late Europe before drifting higher through the NY afternoon into the close. Consolidation between $1.6654/58 was seen in early Asia before rate nudged up to post overnight highs at $1.6662 before turning lower, marking lows at $1.6647 before settling in a tighter range around $1.6650 through to the European open. The domestic data calendar has construction output at 0930GMT but more influence expected to be seen from French, German and EZ GDP releases (ECB Draghi highlighted at last week’s press conference performance in GDP watched more than inflation with regard to any move on rates). Euro-sterling continued its consolidation, after seeing extended lows Thursday of stg0.8180, with trade overnight contained by stg0.82085-0.8220. Cable offers remain at $1.6675/80, a break to expose $1.6700 where barrier interest is said to reside. A break of the figure to bring into view $1.6747 (Apr 2011 high). Support remains into $1.6600.Euro-sterling demand stg0.8180, stg0.8168. Offers stg0.8225/30.
