The pair closed in NY Friday at $1.6970, euro-sterling at stg0.7977. Cable found support in the dip from leveraged names as it recovered off pullback lows of $1.6943 after earlier printing a European session high of $1.6992 in wake of BOE Carney’s hawkish comments. After extending sharp slippage through stg0.8000, the cross fell to 19 month lows of stg0.7972 and continued heavy into the close. Sterling remained on a bid tone in a quiet Asian session with major currency pairs continuing to trade narrow ranges. The dollar came under early selling pressure, this lifted cable in tandem with euro-dollar to print early highs of $1.6684, before profit take sales emerged to pare lightgains. On the order board strong offers are seen protecting the $1.7000 barrier, a break triggers large stops opening more offers placed at $1.7010/20. Euro-sterling saw trade confined to a narrow stg0.7970-0.7981 range with strong demand seen placed all the way down to a reported stg0.7950 barrier. Traders look ahead to a number of key data releases in the UK this week with CPI/PPI on Tuesday, BOE Minutes from Jun 4-5 meeting on Wednesday, followed by Retail Sales on Thursday.
