The pair closed in NY Friday at $1.6638 after rate had recovered off a session low of $1.6599 to $1.6651 before it settled between $1.6630/50 into the week close. Recovery extended into early Asia with rate able to move above Friday’s high and on to $1.6663 before momentum faded. The early move higher was seen led by euro demand as market reacted to weekend comments from ECB Weidmann, the US-Russia summit on the Ukraine as well as reported comments from the German Finance Ministry that the ECB will have to eventually raise rates. The early move met decent supply around $1.6660, with euro-sterling also meeting demand around stg0.8260, which provided for a reversal. Cable initially eased to $1.6640, extended to $1.6628 before it settled around $1.6635 into Europe. Cable support seen between $1.6630/20 ahead of stronger interest around $1.6600. Resistance remains at $1.6663/67. Euro-sterling support seen at stg0.8260/55 ahead of Friday’s low at stg0.8247. UK data calendar has mortgage lending at 0830GMT though non domestic data likely to have more impact with EZ flash inflation due at 0900GMT. Last day of month and fix models suggest aslight bullish tone to the dollar
