The pair closed in NY Friday at $1.6076 after rate recovered off a session low of $1.6009 (Friday’s move down to $1.6009 was an extension of its correction off Thursday highs of $1.6226). Early Asia saw rate drift off to $1.6064 before the dollar pared gains across the board (apart from vs yen) which allowed the rate to push up to $1.6126 before it settled between $1.6110/20 ahead of the European open. This cable recovery trailed euro-dollar’s stronger bounce which in turn saw euro-sterling climb from early Asian lows of stg0.7854 to stg0.78765, trading around stg0.7872 ahead of Europe. Holidays in Japan, US and Canada, as well as a very light data calendar, expected to make for a fairly quiet day, especially into the afternoon session. Resistance seen into$1.6125/35 ($1.6126 Asia high/$1.6135 Oct10 high), a break here to open a moveon toward $1.6143(61.8% $1.6226-1.6009) ahead of $1.6175(76.4%). Support seenbetween $1.6110/00, a break to open a deeper move toward $1.6080 ahead of theAsia low at $1.6064, with the 61.8% retracement of the move up from $1.6009 to $1.6126 coming in close behind at $1.6054. UK inflation Tuesday and employmentWednesday provide early week interest
