The pair closed in NY Friday at $1.5626 after rate was pressed to lows of $1.5605 post London fix before rate recovered to $1.5645, then drifted off into the close. The move lower tracked euro-dollar’s deeper slippage allowing euro-sterling to extend its recent corrective pullback to stg0.7813 (closing the day at stg0.7825). Cable opened Asia and quickly posted lows of $1.5616 before rate recovered through the rest of the session to $1.5647 as the dollar pared some of its Friday gains. Euro-sterling edged up from an early low of stg0.7818 to stg0.78295, trading around stg0.7826 into Europe. Market holidays this week expected to make for extremely thin liquidity with rates open to order driven volatility. Cable resistance seen at $1.5652 (61.8% $1.5681/05) a break to open a move on toward $1.5674-81(NY-Europe highs Dec19). Support now seen from $1.5615 through to $1.5600. A very light UK calendar for Monday with attention to Tuesday’s release of Q3 GDP (final and expected to be confirmed at 0.7% q/q).
