The pair closed in NY Monday at $1.6793 after rate was pressed back from intraday highs of $1.6817 to $1.6790, the move trailing the heavier pressure on euro-dollar, which in turn allowed the cross to extend recent lows to stg0.8209. Thin holiday conditions Monday, most of Europe remaining closed for the Easter holidays left the market to react to the situation in the Ukraine. Cable slippage continued into Asia, the rate extending its corrective pullback to $1.6785 as rate tracked euro-dollar moves (which reacted to dollar-yen action) as euro-sterling was held in a tight range around stg0.8215. Cable recovered to $1.6798 before it settled into a tight $1.6790/96 range ahead of the European open. Markets await the return of European centres fordirection. Light data calendars for today, BOE Minutes due Wednesday and UK retail sales Friday the stand out domestic interest. News over the weekend that US Pfizer has been in talks to tie up with UK Astra Zeneca in a deal worth around stg60bln could provide some underlying buoyancy for the pound. Cable support seen at $1.6785/80 ahead of $1.6770-50. Resistance $1.6820. Euro-sterling support stg0.8210/00, stg0.8190-80. Resistance stg0.8230/40.
