The pair closed in NY Thursday at $1.5385 after rate drifted back from intraday highs of $1.5415. Sterling had been driven higher through the day, initially by the less dovish BOE QIR (long term inflation expectation), then weak US retail sales and late NY positive signs concerning Greece, as newswires suggested Greece and Germany were showing willingness to compromise, and ECB raising the ELA for Greek banks by E5.5bn to E65bn, helped to boost cable. Cable marked lows of $1.5381 in early Asia with early recovery attempts held below $1.5400. Into the Asian afternoon and rate pushed through the figure and extend recovery to $1.5420, with rate holding firm into Europe. Euro-sterling, which had seen extended 7-year lows of stgg0.73715 Thursday, edged up to stg0.7425 on the Greek news, dropped back to stg0.7397 before closing the day at stg0.7414. The cross marked lows in Asia at stg0.7406 before it climbed through the balance of the session to stg0.7420. UK construction data at 0930GMT provides domestic interest this morning, though focus will be on Greek developments/headlines, GDP releases in the EZ, with US UofM providing afternoon interest in the run into the long US weekend(Presidents’ Day Monday).
