The pair closed in NY Thursday at $1.6588 after rate pulled back from an extended recovery to $1.6615 to $1.6567 on risk aversion plays (Ukraine concerns) before settling below $1.6600 through the NY session (NY range $1.6569-98). Cable eased to $1.6584 in opening Asian trade before marking session highs at $1.6592 then lows at $1.6581 before settling around $1.6585 through to the Europe open. Rate was last trading around $1.6582. Euro-sterling was confined to a tight stg0.79445-0.7948 leaving moves in cable to track euro-dollar (though this rate too was caught in a tight range ahead of today’s key EZ flash CPI release 0900GMT). UK data calendar includes Nationwide house prices at 0600GMT but main attention will be on that EZ data for signals for any action at next week’s ECB meeting. End month flows will also take prominence with dollar sell signals noted, though Cit in a note suggests this signal not asstrong versus sterling and euro as it is in others (Barclays Thursday noted a strong dollar sell signal vs sterling). Any benefit from these flows could be offset by end month demand for euro-sterling, and on any further developments in the Ukraine crisis
