The pair closed in NY Monday at $1.4949 after rate had managed to extend its recovery off Friday’s post NFP release lows of $1.4855 to $1.4967, before rate drifted off into the close. Rate touched an early high in Asia of $1.4954 before meeting fresh demand which allowed it to recover to $1.4949 ahead of the European open. Despite the recovery the pound continues to trade with an underlying bearish tone vs the dollar due to BOE Carney’s dovish forward guidance on interest rates, while Friday’s US jobs data has most bringing in their call for a start to tapering QE to September this year. UK domestic data has the release of trade and IP/Mfg production data at 0830GMT, with any shortfall from forecast numbers likely to weigh on sterling, while a positive read will only see a muted response. Cable offers remain at $1.4970/80, more toward $1.5000. Support seen at $1.4920, more toward $1.4900 ahead of stronger interest at $1.4880 and $1.4860/50. Euro-sterling in Asia was confined to a stg0.8601-18 range, holding just off the topside into Europe.
