The pair closed in NY Thursday at $1.6324 after recovering from earlier lows of $1.6272 (rate initially recovered to $1.6320 as the BOE left rates unchanged and issued no statement), dipped back to $1.6276 before bouncing to $1.6348 as rate was pulled higher by the stronger rally in euro-dollar as this rate reacted to a less than dovish ECB Draghi at Thursday’s post no rate change press conference. The move up was countered in part as euro-sterling extended its recent recovery to stg0.8350, but had eased back to stg0.8320/25 into the close. Early sales in Asia extended the corrective pullback to $1.6311 ($1.6310 50% $1.6272-1.6348) but rate rate recovered through the balance of the session to an eventual high of $1.6331, holding just off this high into Europe. Euro-sterling initially saw highs of stg0.8335 into opening Asia before it alsoreflected sterling’s recovery, easing through the rest of the session to stg0.83215. UK IP/MP and trade data due for release at 0930GMT and provides the morning’s domestic interest though expect this to be overshadowed by the release of key US employment data at 1330GMT. Cable offers remain into $1.6350, stops above $1.6355. Further offers $1.6370. Bids $1.6310/00.
