The pair closed in NY Friday at $1.7013 after rate had seen extended recovery highs of $1.7061 (Thu Jun19 high $1.7064) before rate squeezed back to $1.7003 on end of week profit take covering. Demand into $1.7000 cushioned the move and allowed for the small recovery into the close. Rate managed to extend this late recovery to $1.7024 in early Asia before dipping back to mark lows at $1.7010 before bouncing back as markets reacted to the release of stronger than forecast China Mfg PMI data. This recovery move was led by Aussie-dollar with cable pushing back up to $1.7045 ahead of the European open ($1.7047 76.4% $1.7061-03). Offers seen into $1.7050, a break here to expose the area of recent highs between $1.7061-64. Above here and furtheroffers seen at $1.7080 ahead of stronger interest from $1.7090 into the barrier level at $1.7100. Bids remain into $1.7000, with further demand expected to emerge on any dip below the figure. Euro-sterling was contained in Asia between stg0.7980/92. Support in the cross stg0.7960/50, resistance stg0.8025/30. BOE Credit Conditions Survey due at 0830GMT today’s domestic interest. Thursday’s Carney press conference alongside the FSR the week’s main focus.
