The pair closed in NY Friday at $1.6167 after recovering off a session low of $1.6150, with euro-sterling closingthe week above its 200-dma at stg0.8535 at stg0.8539, which could act to place sterling under pressure during Monday. Storm conditions in the UK have disrupted commuting into the London financial districts and expected to subdue markets with a possible late start once transport is moving again. Cable recovered in Asia to $1.6190, though move was seen lagging a euro-dollar recovery, as the cross edged up to stg0.8543 in early trade before it sank back to stg0.8528 toward the the European open, allowing cable to slowly ease to $1.6170 as trade tracked euro-dollar moves. A data light domestic calendar in the UK with focus on Tuesday’s UKlending/mortgage data to see if borrowing supports improved growth forecasts. Cable offers seen at $1.6190-205, a break to open a move toward $1.6212 (61.8% $1.6248-1.6150) ahead of $1.6226 (76.4%) with stronger interest remaining between $1.6250/60. For the cross, a break of Thursday’s high of stg0.85555 exposes stg0.8600.
