The pair closed in NY Monday at $1.5975 after rate had recovered off earlier Asian lows of $1.5928 to $1.6027(reaction to stronger than forecast UK Mfg PMI), corrected off to $1.5963 in NY before settling between $1.5970-90 through the NY afternoon. Euro-sterling, which had seen a react low of stg0.7800 on the PMI data, settled between stg0.7815/20 into the close. A steady open in Asia as market awaited the return of the Tokyo market following their long weekend, with early trade contained within $1.5970/80. Rate edged to $1.5986 before it dropped back to mark session lows at $1.5965 before Japanese dollar sales (led by profit taking in dollar-yen) allowed cable to edge up to $1.6003(61.8% $1.6027-1.5963), with rate holding firmer levels ahead of Europe. The recovery was stronger in euro-dollar and outpaced cable which in turn allowed euro-sterling to extend its correction off stg0.7800 to stg0.78305, the rate also holding into Europe. UK construction PMI data at 0930GMT provides the domestic data interest (Svcs and comp PMI’s due Wednesday). Cable resistance remains at $1.6003, the 76.4% retrace level coming in at $1.6012 ahead of $1.6027 and $1.6038(Oct30 high). Support $1.5965/60, $1.5950 and $1.5928.
