The pair closed in NY at $1.5066 after rate had recovered off a NY session low of $1.5018. Move lower, then late recovery, was seen in tandem with euro-dollar, though cable’s move was seen deeper which allowed euro-sterling to extend its recent recovery through stg0.75115 (Jan27 high) to stg0.75275. The cross closed in NY at stg0.7514. The moves in NY were seen dollar driven with trade through Asia continuing this theme as the cross was contained within a tight stg0.7512/18 range. Cable’s late recovery continued into Asia, the rate edging up to an initial high of $1.5080 before it got an added lift ahead of the European open to $1.5083. End month flows suggested already in motion with one major bank suggesting dollar demand to be seen vs euro and sterling, as well as the possible European sovereign demand for euro-sterling. UK money and credit data due at 0930GMT provides the domestic interest though focus will be on EZ inflation(though ECB sovereign QE already announced), US Q4 GDP, Chicago Report and UofM. For cable, resistance seen into $1.5095/1.5100 ahead of $1.5120/25 and $1.5145/50. Support remains from $1.5020 through to $1.5000.
