The pair closed in NY Friday at $1.4989 after rate had bounced back from a NY open low of $1.4952 to $1.5037 before it settled between $1.4985/1.5000 into the close. More attention Friday was seen on euro plays, following the continued fallout from Thursday’s ECB announcement of EZ sovereign bond buy QE, with euro-sterling extending its fall to stg0.74295 into NY trade, recovered to stg0.7517 before it settled around stg0.7470/75 into the close. Greek anti austerity party Syriza’s win in the Greek election (though at writing no confirmation they have won a majority) weighed heavily on the euro into Asian trade, euro-sterling pressed to fresh 7-yr lows of stg0.7406 (stg0.7404 low Feb’08) before it bounced back, in tandem with euro-dollar’s sharp reversal off lows of $1.1098, toward stg0.7460 into Europe. Cable saw extended lows of $1.4972 in opening Asian trade, as rate tracked the early pressure on the euro, bounced to $1.5027 on euro’s reversal. Rate pulled back to $1.4993 before recovering back above $1.50 into Europe. BOE Kristen Forbes interview in the WSJ suggests need for a rate hike earlier than market expectations. A light UK data calendar, BBA house loans at 0930GMT.
