The pair closed in NY Friday at $1.6481 after rate had spiked off pre US employment report lows of $1.6383 to $1.6518 as market reacted to the release of much lower than forecast US NFP. Rate pulled back to $1.6457 before edging higher though the NY afternoon and into the week’s close. Rate eased to $1.6475 in opening Asian trade Monday before it began to pick up demand interest, the rate reacting the weekend press reports that economists are ‘rapidly revising up their forecasts for UK growth in 2014, despite Friday’s release of disappointing IP/Mfg data. Weekend reports also suggested that Qatar is considering further energy investment into the UK. Cable pushed higher through the session, reclaiming the $1.65 handle before the rise faltered around $1.6508. Rate drifted lower before settling around $1.6495 ahead of the European open. Little on the domestic calendar for today with attention turning toTuesday’s CPI release (expected to remain unchanged at 2.1% y/y) and Friday’s retail sales. Cable resistance seen into $1.6520, a break to open a move toward $1.6540/50 ($1.6542 76.4% $1.6605-1.6337). Support $1.6475/70 ahead of $1.6450 (50% $1.6381-1.6518).
