The pair closed Monday’s NY holiday thinned session at $1.5114 after rate had eased away from earlier highs in the $1.5175/80 area to a late session low of $1.5112. Euro-sterling’s extended recovery, off Friday lows of stg0.7596, on the back of general euro short covering, saw rate edge on to stg0.7683 Monday, the move providing most of the weight on cable. The corrective pullback in cable continued in Asia, as euro-sterling edged to stg0.stg76925 (stg0.7692 = E1.3000), with general demand for the dollar(reaction to a Hilsenrath article suggesting Fed on course to hike rates this year) adding weight as rate eased to $1.5058 (Asia high $1.5111). Cable recovered through the balance of the session, edging back above $1.5080 into Europe, as the cross backed away from its earlier highs, marking fresh lows of stg0.7678 (Asia low stg0.7680) in opening European trade. Position adjustments ahead of Thursday’s widely forecast ECB announcement to begin EZ Govt. bond buying QE continues to dominate trade. A light domestic calendar for the UK data wise, BOE Cunliffe speaks in London at 1345GMT. Focus today on Germany ZEW at 1000GMT, then US housing data at 1500GMT.
