Closed in NY Friday at $1.5518 after rate had seen extended lows of $1.5462 before recovering to $1.5543 as sterling hitched a ride higher following yen’s sell off following G20 Communique draft release showing Japan not directly criticized for devaluing its currency. Cable drifted off those react highs but found support above $1.5510 into the close. Cable continued to drift lower into early Asia before if got shoved down to $1.5472, as euro-sterling spiked up to stg0.8625. Cable edged back to settle between $1.5475/95 through the balance of the session, while the cross settled between stg0.8605/15, though this rate was seen picking up fresh demand into early Europe. Despite some recovery efforts the recent underlying negative tone toward sterling remains in place, especially vs the dollar, with some support vs the euro able at times to provide to buoyancy. A light UK data calendar for today with moves in sterling to come from outside influences. BOE Minutes and UK jobless claims Wednesday the nxt domestic interest of note, with borrowing data due Thursday. Comments from BOE Weale at the weekend would tend to suggest BOE support for a weaker pound, though post G7/G20 statements this cannot be declared.
EasyForexNews Research Team