The pair closed in NY Friday at $1.6250 after rate was pressed to extended intraday lows of $1.6239 on strong dollar demand, prompted by the news of Bill Gross leaving Pimco with end month dollar demand also noted in the move. Cable began to drift lower in early Asian trade before dropping sharply to $1.6210, the move seen as a reaction to the sharp sell off in in NZD on reserve data showing intervention in August, along with NZ PM comments suggesting a comfortable level for NZD at $0.65 (currently around $0.7750). Rate recovered just as quickly to $1.6251 before it drifted off through the balance, breaking back under $1.6220 ahead of Europe. Euro-sterling closed in NY at stg0.7808, jumped to stg0.7818 on the cable spike lower before dropping back to stg0.7800. Rate then mirrored cable’s drift lower as the cross edged up to the stg0.7810/15 area where it settled ahead of the European open. UK lending data at 0830GMT provides the domestic interest this morning, with German inflation data toprovide the main morning interest, along with EZ sentiment indicators. US Pers.Inc and PCE at 1230GMT the focus into the afternoon, with pending home sales at 1400GMT. End month dollar demand expected to influence.
