The pair closed in NY $1.6411 after the release of weaker than forecast US NFP data had helped the rate to recover from its post UK IP/MP release lows of $1.6401 to a post NFP high of $1.6419. Strong demand for sterling-yen was seen as the main driver in the cable recovery. Cable’s late NY drift lower extended into early Asia to $1.6399 before demand emerged into the Tokyo open. Rate pushed to an early high of $1.6415 before it settled back around $1.6400 as trade sank into a fairly lack lustre session. Rate managed to extend the topside to $1.6417 into the Asian afternoon before drifting off again to settle back around $1.6410. Euro-sterling was contained within a tight rangearound stg0.8300 through Asia, parameters stg0.8298-0.8304. The main focus of the week will be on Wednesday’s Quarterly Inflation Report, the market watching for any change to BOE Carney’s Forward Guidance. Cable offers seen placed into $1.6420 ($1.6419 NY high and 50-dma comes through at $1.6420). A break of $1.6420 to open potential for a move toward $1.6450. Support $1.6400, $1.6375/70 ahead of $1.6360-45 (50%-61.8% $1.6301-1.6419). Lloyds employment confidence indicator due at 0930GMT.
