The pair closed in NY Friday at $1.6733 after rate was pressed to session lows of $1.6717, as euro-sterling pushed through resistance at stg0.8286, the break allowing it to move up to stg0.8310 (closing the day back at stg0.8298), with cable recovering to $1.6750 before easing off into the close. ECB Draghi comments at the weekend that the strength of the euro could force the ECB’s hand in lowering rates saw the cross drop to stg0.8272 in opening Asian trade, the move allowing cable to edge back up to $1.6745, from an opening dip low of $1.6709, before it settled around $1.6735 into Europe. Thecross settled around stg0.8280 ahead of the European open. A light domestic calendar for Monday, markets expected to focus on further ECB rhetoric (though needing some actual action to back of the words), with UK CPI and Employment Report the interest in a shortened Easter holiday week. Cable support $1.6710/00, $1.6685/80. Resistance $1.6750 ahead of Friday’s high of $1.6787. Cross resistance remains at stg0.8310/15, support stg0.8270/60 (50%-61.8% stg0.8231-0.8310).
