The pair closed Friday in NY at $1.5438 after rate had recovered off an intraday low of $1.5384 to an end month London fix inspired high of $1.5459, the rate buoyed above $1.5430 into the close with help from euro-sterling. The cross had tracked euro-dollar lower, posting fresh lows of stg0.72465 (stg0.7246 = E1.3800). The weekend China rate cut boosted the risk outlook into opening trade Monday but this reaction proved short lived as a strong demand for dollars emerged. Cable managed to post an early Asia high at $1.5450 before it turned lower, the rate easing through the main part of the day to a low of $1.5393, finding demand ahead of the European which has allowed rate to edge back above $1.5400, trading around $1.5410 into Europe. Euro-sterling saw extended lows of stg0.7235 (lowest since Dec ’07 stg0.7089) in opening trade before it recovered to stg0.7259. The rate was holding toward the Asian highs into Europe. Weekend/morning reports tend to favour dollar strength, some highlight Friday’s hawkish tone from the Fed’s Fischer, and this should provide an underlying tone through to Friday’s US NFP. UK Nationwide at 0700GMT followed by lending at 0930GMT with UK mfg PMI seen as the highlight.
