The pair closed in NY Monday at $1.6980, euro-sterling at stg0.7990. Cable took out the $1.7000 barrier and extended to multi-year highs of $1.7011, before short covering in euro-sterling pressed to $1.6959. The dip attracted fresh demand interest in early NY and lifted to $1.6994, before momentum faded into the close. Euro-sterling bounced off multi-year lows of stg0.7959, however with gains capped ahead of stg0.8000 from reported corporate names the cross held firm into the close. Cable lifted in tandem witheuro-dollar to print early Asian session highs of $1.6981 with moves supported by the euro crosses. As the rally fizzled out broad based dollar demand pared light gains, with second wave sales taking the rate on to extended lows of $1.6959. Buyers emerged in the dip aiding recovery efforts to settle around $1.6965/70. On the downside bids are reported at $1.6950, ahead of tech support at $1.6943 (Jun13 low). Euro-sterling briefly made a show back above stg0.8000, before euro-dollar slippage weighed to stg0.7990. UK data release today from CPI/PPI expected to provide direction in headline driven markets.
