The pair closed Monday in NY at $1.6870 after rate had eased from an early day high of $1.6883 to $1.6855 before it settled around $1.6870 through the NY afternoon after a fairly subdued, holiday thinned, session. Cable touched a low of $1.6866 in early Asian trade before fresh demand interest emerged to take rate to session highs of $1.6894, with rate holding around $1.6890 ahead of the European open (UK return). Euro-sterling was confined to a range of stg0.8219/26 in Asia. Domestic interest will be set on the release of UK services and composite PMI data at 0830GMT (svcs median 57.8 vs 57.6 last). Offers seen in place toward $1.6900 ($1.6898 76.4% $1.6921-1.6823), a break toopen a move toward $1.6920/25 ahead of $1.6940/50. Support $1.6865/55 ahead of$1.6825/20. BOE MPC rate decision Thursday, though no change in rates expected,the meeting expected to draw comment for the Minutes as members are now free tovote for higher rates after UK unemployment is below the 7.0% threshold.
