The pair closed in NY Friday at $1.5358 after recovering off lows of $1.5315. Rate had been pressed lower through Friday’s session, extending its corrective pullback off recent highs of $1.5589, as the dollar performed a general recovery based off improved employment data. Trade in Asia consolidated Friday’s move with dealing contained within a range of $1.5337/66, recovering off that low to currently trade around $1.5361 into Europe. Euro-sterling was squeezed lower into early Asia as it reacted to euro-dollar’s mark down into the new session, the rate touching a low of stg0.8440 before bouncing to stg0.8452 then settling around stg0.8450 through the session and into Europe. A light domestic calendar in the UK, the CBI issuing a report earlier in the day noting that the UK economy is improving, though at a slower pace, with moves today to come from outside influences. Wednesday’s BOE Inflation Report (King’s last) has market expecting the Bank to revise up its growth forecasts a little and revise down its inflation outlook. Cable support remains in place at $1.5315, more toward $1.5300, with stops seen through $1.5295/90. Resistance $1.5366 (50% $1.5417-1.5315) ahead of $1.5380.
