The pair closed in NY Friday at $1.5060 after rate had been pressed to end month fix induced lows of $1.4989. Euro-sterling, which had seen demand at the fixes on Friday, quickly reversed lower (having seen fix highs of stg0.7536-33), posting a late session low of stg0.7495 as euro-dollar’s fix sales outpaced cable. Cable’s recovery extended into early Asia, the move up aided as dollar-yen came under strong sell pressure in pre Tokyo trade, the rate touching $1.5100 before momentum faded and it settled between $1.5070-90 through to the European open. Euro-sterling jumped up to stg0.75065 in early trade before it settled between stg0.7490/0.7505. Manufacturing PMI’s to be released today, UK at 0930GMT (median 52.7 vs last 52.5). Positive growth outlook for the UK in the first quarter (Times David Smith basing this on strong CBI sales data Jan29, with one major clearer forecasting today’s PMI to underline this) should provide sterling with some buoyancy although others see the looming UK election as providing headwinds. Cable resistance remains into $1.5100, a break to open a move on toward $1.5110-25 with the $1.5140/50 area expected to prompt fading. Support $1.5070, $1.5045-30.
