The pair closed in NY Monday at $1.6402 after rate had managed to recover off a traded low of $1.6337 (soft UK svcs PMI release) to $1.6434 in the NY session, as markets sold the dollar across the board on release of weaker than forecast US non-mfg ISM data. Rate then corrected back to $1.6394 before settling between $1.6400/20 into the close. Rate recovered to retest that late NY recovery high at $1.6420 in early Asian dealing but again met decent resistance here. Rate drifted off to $1.6395, recovered to $1.6407 before extending lows to $1.6387 into the Asian afternoon. Cable was trading around $1.6395 into Europe. Euro-sterling was contained within a tight stg0.8302/13range in Asia allowing cable to track euro-dollar moves. Halifax house price data due at 0800GMT and provides the only domestic interest. Germany retail sales at 0700GMT and EZ inflation at 1000GMT the outside interest this morning. Sterling continues to trade with an underlying soft bias, following weekend press report suggesting the BOE may lower its unemployment threshold (currently 7.0%, possibly moving to 6.5%) linked to rate hike considerations. Cable offers $1.6420, $1.6434-50. Bids $1.6380. E/stg offers stg0.8330/35, support stg0.8280.
