Despite much better-than-expected US Non-farm Payroll data the dollar reversed post react gains to end the week on a heavy tone. Cable closed in NY Friday at $1.6875, euro-sterling at stg0.8218. The rate recovered off pullback lows of $1.6821 following the strong US employment report, after earlier printing an Asian session high of $1.6895. The cross found strong support in the dip ahead of stg0.8200, tracking the euro-dollar recovery to hold firm. Dealers reported of light flow overnight in a very quiet Asian session seen across the board. Cable edged to $1.6880 in early trade, before lightprofit take sales weighed. The dip attracted fresh buying interest and the pair lifted with euro-dollar to $1.6883, however with moves lacking any conviction soon drifted to settle in the middle of a narrow range. Strong offers are seen capping the topside on approach to $1.6900, a break opens techs at $1.6921 (May 1 high). Euro-sterling was contained within a tight stg0.8214-26 range with moves to the topside capped ahead of stg0.8230/35 (stg0.8235 – 61.8% of stg0.8259-0.8195). With London out for the early May Bank holiday thin trading conditions are expected to continue in headline driven markets.
