The pair closed in NY Tuesday at $1.5314 after rate had recovered off lows of $1.5274 to $1.5319 ahead of the close. Rate initially edged to $1.5318 before it tracked euro-dollar easing to $1.5290 before meeting decent demand. Rate recovered to an initial high of $1.5322, dipped to $1.5303 before pushing on to an overnight high of $1.5333 before settling between $1.5320/30 ahead of the European open. Euro-sterling was contained through Asia between stg0.8535/47 allowing cable to take direction from euro-dollar. Services PMI data at 0828GMT provides the morning’s focus (following services PMI releases in the Eurozone), with US ADP (ahead of Friday’s NFP) will be the early afternoon interest. Resistance seen at the Asian high of $1.5333, more at Tuesday’s high of $1.5343 ahead of $1.5352 (76.4% $1.5376-1.5274) and Monday’s US ISM react highs of $1.5376. Support $1.5290 ahead of $1.5275/70.
