The pair closed in NY Monday at $1.6655 after rate had recovered off extended pullback lows of $1.6583, recovering to $1.6670 during the NY afternoon before drifting off into the close. This corrective easing extended into early Asia, the rate drifting off to $1.6646 before fresh demand emerged to allow rate to edge up and retest that NY recovery high, touching a high of $1.6671. Pullbacks were supported above $1.6660 with rate trading around $1.6667 into Europe. Another tranche of the Verizon-Vodafone sterling repatriation expected for today’s 1600GMT fix, though as was the experience Friday traders will be wary of expecting any boosted buying as a result. Through the day expectany dips to attract decent demand, though market aware of downside stops in straight cable below $1.6570, as well as market seen sitting long sterling crosses such as sterling-Aussie and sterling-Cad which could also come under pressure. UK calendar sees mortgage lending data at 0930GMT followed by CBI sales at 1100GMT. A Reuters interview with BOE McCafferty is due for release this morning, while BOE Bulley is due to speak at 1630GMT. Cable demand seen at $1.6585/80, resistance $1.6670/80 ahead of $1.6700 and $1.6730/35.
