The pair closed in NY Friday at $1.6755 after rate had extended its recovery off Thursday lows of $1.6693 to $1.6778 into Friday’s month end fix, before rate drifted lower through the NY afternoon to $1.6750. Cable recovered into early Asian trade Monday, the rate lifting to mark overnight highs at $1.6770 before rally lost momentum and began to ease on general dollar demand. Cable has traded to a low of $1.6738 ahead of the European open with rate holding soft at writing. Euro-sterling was showing sterling weakness as it trades toward the top end of its overnight range of stg0.8130/41 ahead of Europe. Traders note that market in general has been trading sterling from thelong side versus the dollar and the euro and suggest this positioning could be open to some paring back ahead of this week’s key releases. Today we have UK mfg PMI data (0830GMT), along with lending data, with main focus on EZ flash inflation data Tuesday ahead of Thursday’s ECB rate/monpol announcement, with Friday’s US jobs data lurking in the background. Cable offers $1.6770/80 ($1.6774 50-dma), support $1.6738, $1.6727. Euro-sterling offers stg0.8150 (stg0.8148 21-dma), support stg0.8130, stronger stg0.8120.
