The pair closed in NY Thursday at $1.6145 after rate was sold down to a session low of $1.6112, from a post positive UK construction PMI release high of $1.6208, before recovering to $1.6162 ahead of the close. Sterling came under general pressure through Thursday in a mix of dollar demand, with the euro recovery, boosted by the less dovish than expected ECB Draghi press conference, allowing euro-sterling to extend its recovery off recent lows between stg0.77665-0.7768 to stg0.7858. Dollar plays came back into focus Friday on pre NFP positioning leaving the cross to consolidate betweenstg0.78395-0.7848 through Asia, while cable edged to $1.6159 before drifting off to $1.6126, settling around $1.6135 ahead of the European open. PMI services and composite data due today, with UK release at 0830GMT following EZ numbers. However, this afternoon’s US NFP will overshadow (median 215k). Trader reports suggest that the cable correction seen catching up on recent dollar recovery, while euro-sterling, though still favoured lower over the medium term due to monetary policy divergence, is seen as a short crowded trade and views current recovery away from key stg0.7755/45 area as a healthy correction.
