The pair closed in NY Monday at $1.6610 after rate had been able to eventually play catch up on euro-dollar’s recovery, trading up from European morning lows of $1.6567 to $1.6624. The move was aided as euro-sterling eased away from from its traded highs of stg0.8286 to stg0.8266 (closing the day at stg0.8274) while euro-dollar met decent resistance in the area between $1.3745/50. Cable remained buoyed above $1.6600 through the NY afternoon. Rate marked lows in early Asia at $1.6605 before edging on to $1.6622, the move fading just ahead of the NY high, but the underlying tone remained firm with rate then settling between $1.6612/19 ahead of the European open. Euro-sterling was confined to a tight stg0.82705-0.8275 range. Focus this morning on releaseof UK IP/Mfg data at 0830GMT, median expectations for both are 0.3% m/m. Markets in general remain fairly subdued. Cable offers remain at $1.6625/35, more into $1.6650, stronger at $1.6660/65. Support $1.6605/00, $1.6580 and $1.6555/45.
