The pair closed in NY Friday at $1.6616, just off intraday lows of $1.6610. An eventful session as rate had initially marked highs of $1.6685, dropped back to $1.6610 on reaction to soft retail sales data only to meet aggressive demand that eventually took rate to highs of $1.6725 into the London 1600GMT fix. Heavy profit take sales post fix saw market caught long with the resultant sell off taking the rate to $1.6613 with recovery attempts held below $1.6650 ahead of the close. Cable gradually recovered through Asia, the rate retesting that NY recovery high at $1.6648 but offers placed into $1.6650 again countered the move with rate easing back to $1.6640 at posting. Bids remain inplace from $1.6615 with interest dotted down to $1.6595 with main stops placed on a break of $1.6580. Offers $1.6650, a break here to meet resistance at $1.6656 (38.2% $1.6725-1.6613) ahead of $1.6670/80 and $1.6700. A light domestic calendar for the UK with focus expected to be on Germany Ifo (0900GMT) and EZ CPI (1000GMT). Euro-sterling, which had seen highs of stg0.8264 Friday consolidated between stg0.8253-65 in Asia.
