The pair closed Monday’s North American holiday session at $1.5358 after rate had been helped to recover off its session low of $1.5339 as the Eurogroup/Greece talks ended abruptly with Greece rejecting proposal for a 6-month extension to the bailout package. This announcement weighed heavily on the euro with euro-sterling, which had seen intraday highs of stg0.7427, was pressed to lows of stg0.7375, closing the day around stg0.7389, the move down in the cross pushed csable to a recovery high of $1.5373 into the close. Opening Asia saw cable step its way down to session lows of $1.5354, as rate tracked fresh pressure on the euro, though move lower was tempered as euro-sterling eased off to retest Monday’s low. Cable recovered with euro-dollar, the rate edging up to $1.5381, while the cross also nudged higher before settling around stg0.7390. Cable settled between $1.5375/80 ahead of Europe. Focus turns to UK CPI at 0930GMT (median 0.4% y/y), with ONS house prices released at the same time. Expect some reaction on the inflation data release though the Greek saga will continue to overshadow markets, leaving rates open to headline driven trade. Cable offers into $1.5380. Support $1.5350, $1.5339
