The pair closed in NY Friday at $1.6975 after rate had seen react highs of $1.6992 following the release of in line Q2 GDP data. However, the move into dollars, which had been prevalent ahead of the data release, emerged to press rate to lows of $1.6963 before it recovered to $1.6996 into early NY. Position adjustments into the weekend, with focus set on developments in the Ukraine, saw fresh demand for dollars ease cable back to $1.6965 before it edged back to its closing level in the close. A slow Asian session, with Singapore, Malaysia and Indonesia closed for holidays, saw cable edge its way to overnight highs of $1.6982 before it settled between $1.6975/80 through to the European open. A generally light data calendar for Monday (US Svcs PMI at 1345GMT then pending home sales at 1400GMT the stand out interest) with moves to come fromend month flows and any geopolitical developments. Interest this week will be on UK corporate performance in the face of the recent strong pound, Rolls Royce, BAE Systems, GKN and Diageo are due to report, ahead of Friday’s UK mfg PMI release. Sterling remains in favour, though traders prefer to buy into dips, with euro-sterling the preferred vehicle.
