The pair closed in NY Monday at $1.5026 after recovering from a sharp pullback low of $1.5010 post London fix. Rate did recover to $1.5050 during the NY afternoon, dipping back to $1.5020 before recovering into the close. Dollar demand into Asia saw cable pressed back to $1.5022 before it managed to recover to $1.5043. RBA announced a 25bp cut in rates which led to a sharp sell off in the Aussie, the move in turn took cable to extended lows of $1.5015, settling between $1.5015/20 into Europe. Euro-sterling consolidated between stg0.7540/45 through Asia. UK construction PMI due at 0930GMT provides the morning’s domestic interest, though more focus seen on Wednesday’s services PMI and Thursday’s BOE MPC rate/QE decision. Cable support seen from $1.5015 through to $1.5000, a break here to open a deeper move toward $1.4989(Fri Jan30 low) ahead of $1.5073-66 and the 18-mth low at $1.4952(Jan23). Resistance $1.5050 ahead of $1.5083/88 and $1.5100. Euro-sterling saw extended rally highs of stg0.7565 Monday before it pulled back to stg0.7520. Rate then settled between stg0.7545/55 into the close. Talk noting decent stops in place between stg0.7565/75 and may attract before we see fresh downside pressure.
