The pair closed in NY Monday at $1.6666 after it had recovered off a session low of $1.6613 to $1.6684 as sterling enjoyed end month demand interest at the London fix. Rate drifted off into the close before picking up fresh demand into early Asia which lifted it back to $1.6671. Rate then settled between $1.6660/70 before it squeezed to an overnight low of $1.6657 (38.2% $1.6613-84) then settled back around $1.6665 ahead of the European open. The $1.6667 level seems to provide some attraction in cable, the level corresponds to stg0.60p and could attract corporate interest (similar to stg0.8333 which equates to E1.20). Euro-sterling, which had seen recovery highs of stg0.8298Monday, closed the day at stg0.8265, off a pullback low of stg0.8256. Rate consolidated this move within a very tight stg0.8265/0.82685 range in Asia. Eurozone (starting with Spain at 0715GMT through to EZ at 0758GMT) and UK manufacturing PMI (0828GMT) data due out this morning and will concentrate interest. Some overhang end month interest also expected to have some effect. Cable support $1.6657 ahead of $1.6650/40. Resistance $1.6680/85 ahead of $1.6700.
