The pair closed in NY Friday at $1.6821 after rate had seen extended lows of $1.6812 following the release of weaker than forecast UK mfg PMI data, with the post US NFP/earnings recovery meeting resistance at the broken 100-dma at $1.6861, the close below placing further negative tones on the rate. This move lower in cable has kept euro-sterling buoyed, the cross having seen decent end month demand that had lifted to extended recovery highs of stg0.7985 in NY Friday, with trade in Asia consolidating this move between stg0.7974-83. Cable edged to $1.6836 in early Asian dealing before it drifted off to $1.6817. Rate managed to recover to $1.6833, as euro-sterling met sellersabove stg0.7980, with rate settling between $1.6820/30 into the European open. UK construction PMI due at 0830GMT (median 62.0 vs last 62.6) provides the morning’s domestic interest. Cable support $1.6812 ($1.6811 76.4% $1.6693-1.7192), more into $1.6800. A break here to expose $1.6785/80 ahead of $1.6750, with traders seeing potential for a retest of $1.6693(May29 low). Euro-sterling offers stg0.7985 ahead of stg0.8000. Traders still prefer to fade rallies in the cross, though have moved back potential highs to stg0.8030-70
