The pair closed in NY Friday at $1.6713 after rate had been driven down to lows of $1.6706 following the release of stronger than forecast US NFP data. Recovery efforts faltered around $1.6735 before rate drifted off into the close. The strong NFP, along with Thursday’s neutral ECB meeting (after market had expected a possible rut and/or removal of SMP sterilization) acted to weigh on sterling as euro-sterling extended its recent recovery to make a show above stg0.8300 (NY high stg0.8301; matched Feb12 high). Cable spiked to a high of $1.6745 in opening Asian trade as rate reacted to the sharp mark down in dollar-yen following the weekend release of disappointing China data. Rate failed to hold gains and eased down to $1.6718 into the Tokyo open before itsettled into a $1.6730/40 range through the mian part of Asia, trading around $1.6735 in to Europe. A light domestic calendar in the UK, Lloyds Employment Confidence due at 0930GMT. Effects from Friday’s US data to continue, with US markets opening one hour earlier due to clock change at the weekend. Cable offers $1.6745/55, $1.6770 ahead of $1.6785/1.6800. Support $1.6720/00, $1.6686, $1.6650/40. Euro-sterling offers stg0.8300/05, stg0.8330/35. Support stg0.8280.
