The pair closed in NY Friday at $1.6090 after rate had extended its recovery off Thursday lows of $1.5995 (Friday low in Europe $1.6017) to $1.6099 as euro-sterling was pressed to lows of stg0.7871 as traders adjusted positions ahead of the weekend EZ bank stress test results. These results, released Sunday, were seen euro and risk positive which boosted euro-dollar and dragged cable to extended highs of $1.6108, off an early Asia low of $1.6083. Euro-sterling edging up from stg0.7876 to stg0.78945 through the Asia day provided some counter to cable gains though rate was holding $1.6100 ahead of the European open. A data light week in the UK with attention turning to outside influences, key being the FOMC on Nov29. For today Germany Ifo at 0900GMT provides the morning interest, US pending home sales at 1400GMT. Month end looms Friday and can expect some position adjustments heading into the weekend. Trader reports remain bearish for cable and will look to fade rallies. Euro-sterling still favoured lower in the medium term but has the area between stg0.7870-50 to contend with to boost this prospect.
