The pair closed in NY $1.6664 after rate reversed away from the $1.6750 (seen in Europe after release of strong UK mfg PMI data) with dollar demand into the NY session providing the weight to take it through the earlier, pre data, lows of $1.6698 to $1.6654. This move lower was seen prompted by dollar safe haven demand as markets took direction from developments in the Ukraine/Russia Crimea stand off. As is often the case the first casualty of ‘war’ is the truth with spurious comments Monday driving market direction. Cable recovered in late NY and into Asia, the rate able to post highs into the new Asian session of $1.6669 before turning lower, extending lows to $1.6640 beforedemand emerged to cushion and allow for a recovery back to $1.6660. Late Asia and into Europe a Reuters report stating that Russian president Putin had ordered tropps currently on exercise back to bases lifted some of the risk off pressure and allowed cable to edge back and retest that $1.6669 level. Rate currently seen settled around $1.6667 into Europe (cable appears to like this $1.6667 level having been attracted back to it on several occasions; Jan24 high). A light data calendar, UK construction PMI at 0930GMT.
