The pair closed in NY Monday at $1.7128 after rate had been pressed lower through the European session to a low of $1.7109 as traders pared longs ahead of today’s release of UK IP/Mfg data (0830GMT). The move down was also influenced by a rise in UST yields, though as these reversed in NY (returning from their long July4th weekend), so cable recovered through the US afternoon to $1.7139 before it drifted off into the close. Sterling picked up fresh demand into Asia with cable pushed to recovery highs of $1.7147 ($1.7148 61.8% $1.7172-09), euro-sterling eased to stg0.7935 (having seen highs Monday of stg0.7947, coming off from early Asian highs of stg0.7945), before momentum stalled. Cable reversed tack and eased off to $1.7126, while the cross bounced back to stg0.7943, but sterling was holding off those pullback levels ahead ofthe European open. As mentioned, UK IP/Mfg data provides today’s domestic interest, median IP 0.3% m/m-Mfg 0.4% m/m. A positive release expected to provide cable with another lift, though a bigger reaction could be seen if data miss median expectations. Cable support $1.7110/1.7090. Resistance $1.7170/80. Euro-sterling support stg0.7915, resistance into stg0.7950
