The pair closed in NY Thursday at $1.6817 after was pressed to session lows of $1.6723 on the initial reaction to ECB Draghi’s liquidity action, with rate bouncing back sharply as it tracked euro-dollar’s sharper bounce that saw it trade up to $1.6823. The recovery rally was tempered by euro-sterling as this rate, which had dropped to fresh 2014 lows of stg0.8064 (E1.2400), bounced back with euro-dollar to stg0.8128, closing the day at stg0.8121. Cable eased from $1.6819 in early Asia to retest the late NY pullback low at $1.6808 (off $1.6823) but again met demand here before recovering to$1.6815. Trade through Asia was again subdued, following the sharp moves seen post ECB rate/monpol announcements, with this afternoon’s US NFP now taking over the main focus. Euro-sterling consolidated Thursday’s recovery between stg0.8125/30 in Asia. UK trade data, as well as BOE inflation projection, at 0830GMT provides the domestic focus, but this will be overshadowed by ECB fall out and US NFP. Cable offers seen at $1.6823 ahead of $1.6838 (76.4% $1.6883-1.6693) with stronger resistance seen up at $1.6883 (May27 high). Support $1.6808/00, ahead of $1.6789-85(50-dma/38.2% $1.6723-1.6823).
