The pair closed in NY Friday at $1.6370. The rate spiked to fresh 27 month highs of $1.6384 ahead of the London fix, before profit take sales eased. Sterling saw strong gains on the week, this followed Thursday’s announcement from the Bank of England that said it was rolling back stimulus to the UK housing market. Euro-sterling continued heavy throughout the NY session and made a show under stg0.8300 to 10 month lows of stg0.8297 in late dealings. Cable found support in early Asia buoyed by positive news in the weekend press that the Office for Budget Responsibility will make its biggest upgrade to Britain’s prospect for three years. It said growth has jumped from the 0.6%forecast in March to about 1.4%, this spiked cable through the $1.6400 barrier, triggering stop loss buying to print extended highs of $1.6443. Profit take sales later eased throughout the session as the pair looks to consolidate above $1.6400 into Europe. Euro-sterling pressed to stg0.8274 on the move, before grinding to stg0.8285/90. Traders look ahead to release of November mfg PMI data for further direction.
