The pair closed Friday’s NY session at $1.5419 after rate had been sold down from an early day high of $1.5523 to $1.5368 in early NY, recovering to $1.5456 before drifting off into the close. Rate dropped to $1.5401 into the Asian open, extending pullback lows in early trade to $1.5370 before making a recovery attempt only for the rally to be thwarted by sell interest sitting at $1.5400. Rate turned lower during the Asian afternoon, extending lows to $1.5365 with recovery efforts this time faltering around $1.5380 ahead of the European open. A light domestic data calendar today so moves to come from activity in the euro, with focus then turning to UST yields into the afternoon as the fall out from last Wednesday’s FOMC comments continue to get analyzed. Cable demand seen placed into $1.5350 with stops below. Resistance seen at $1.5410 (Asia high) ahead of $1.5450/60. Cable seen opening the European session back above $1.5380 ($1.5378 55-dma). Euro-sterling in Asia was held within a range of stg0.85055-26 (stg0.8506 55-dma) with rate holding just off highs around stg0.8520 into Europe.
