The pair closed in NY Friday at $1.6118 after rate had seen a session high of $1.6136 (off earlier lows of $1.6048), pulling back to $1.6090 before nudging higher into the week close. Sterling finished the week on a generally buoyant note, supported by the BOE Inflation Report comments on the forecast timetable for UK unemployment to hit key level, and thus turn attention to tightening, with BOE Weale comments Friday supporting this outlook, though later negative comments on the effects of a strong pound only causing a minor dent. Cable consolidated between $1.6120/26 in early Asia before squeezing down to $1.6104, the move tracking euro-dollar moves as the cross was held within a tight stg0.8363-0.83735 range. However, the dip quickly attracted fresh demandwhich pressured rate to $1.6132, with early Europe extending this move above the NY high of $1.6136 and on to $1.6142. Reported offers placed between $1.6140/50 have so far been able to provide a counter but rate seen holding firm as London traders begin to arrive. A break of $1.6150 to open a move toward $1.6163 (76.4% $1.6258-1.5855, with stops noted on a break of $1.6165. A light domestic data day, focus this week on UK public finances and BOE Minutes.
