The pair closed in NY Friday at $1.6439, off its late session lows of $1.6426 after rate had been pulled lower by month end flow driven slippage in euro-dollar. This move lower was given some buoyancy via euro-sterling as this rate broke below stg0.8200 to extend its recent corrective pullback to stg0.8188, though closed the week around stg0.8204. Cable extended its corrective pullback, off an opening high of $1.6449, to $1.6415 in early Asian trade, recovering to $1.6440 before it settled between $1.6420/35 throughthe balance of the session. Euro-sterling was held between stg0.8199-0.8213 through the Asian session, trading around stg0.8209 into Europe. PMI manufacturing data provides the day’s interest, Eurozone (major) releases begin around 0813GMT (Spain) ending with Eurozone at 0858GMT. UK PMI to be released at 0928GMT. Residual end month flows could continue to influence, the main interest seen Friday was dollar demand, primarily versus the euro. Into the week and focus will be on central bank meeting with the BOE and ECB both announcing on Thursday, followed Friday by US employment data. Cable demand remains at $1.6415/10, stops below. Resistance $1.6450.
