The pair closed in NY Friday at $1.6572 after rate continued to consolidate Wednesday’s (Aug20) break below $1.6600, with trade through the day contained within a range of $1.6562-98 as markets awaited Fed Yellen’s speech at Jackson Hole, followed by ECB Draghi later in the day. The dollar gained a boost as Fed Yellen was seen ‘middle of the road’, in from the usual dovishness. The effect of this was seen more into Asia as euro-dollar was marked lower, which in turn saw cable marked down to $1.6501, from an opening level of $1.6576, at the Asia open. However, buyers took advantage of the dip and helped rate recover through the balance of the session to $1.6566. This recovery was also aided as the euro was seen under heavier pressure which allowed euro-sterling to settled between stg0.7970-90 after closing out last week at stg0.7991. The cross was trading around stg0.7972 ahead of the European open. UK holiday Monday expected to make for thin trade in sterling pairs, though rates to remain influenced by the knock on effects from Jackson Hole. Germany Ifo at 0800GMT, US services PMI and new home sales data due out in the afternoon provide the main data interest. Support $1.6500 (barrier), resistance $1.6576 ahead of $1.6600.
