The pair closed in NY Friday at $1.6693 after rate had, for the most part, been capped by $1.6700 (high $1.6702), with the positive reaction to the upside revision in UK Q2 GDP y/y failing to allow for a strong break above the figure. Euro-sterling also remained above its support at stg0.8000, closing the week around stg0.8025. Sterling was marked higher into opening Asian trade as markets reacted to BOE Carney comments in a Sunday Times interview that said interest rate rise can precede a rise in real wages (though this was basically said in the QIR and by BOE Miles last week). Cable spiked up to $1.6739, the move greeting an opening Tokyo market with better sell levels as they pressed rate back to $1.6710. Rate recovered through the balance of the session, trading around $1.6730 ahead of the European open. Traders aware there is a technicalgap to fill down to $1.6693. Euro-sterling saw opening lows of stg0.7994 but failed to hold below the figure, corrected to stg0.8013 before settling between stg0.8005/10 into the Asian afternoon. A fairly light global data calendar Monday. Attention set on Tu UK CPI, Wed BOE Minutes and Thu retail sales. Key event this week will be Fed Yellen at Jackson Hole Fri.
