The pair closed in NY Friday at $1.5150 after rate had recovered off extended lows of $1.5075, seen into the London fix, to $1.5171 during the NY afternoon before it drifted off into the close and ahead of the long US weekend (MLK Day today). This late NY easing continued into Asia with rate trading off to $1.5120 before it settled between $1.5125/50 through the balance of the session, trading around $1.5143 into Europe. Euro-sterling, which had seen extended lows of stg0.7596 pre London fix, recovered stg0.7642 before closing the week at stg0.7636. Trade through Asia was contained within a range of stg0.7630/44, the rate favouring toward the base into Europe. Last Thursday`s action by the SNB to remove the Chf1.20 floor in euro-Swiss has kept pressure on the euro, with Thursday’s ECB announcement closely watched for a move to government bond buying QE also adding weight. This pressure on euro-sterling is providing buoyancy for cable, with the pound enjoying some safe haven inflows. Cross resistance seen at stg0.7650, stronger into stg0.7700. Support stg0.7600/0.7590. Cable currently meeting resistance into $1.5150, a break to expose the NY recovery high at $1.5171. Support $1.5120, $1.5075.
