The pair closed in NY Monday at $1.7026 after rate had been pressed back from earlier session highs of $1.7051 to $1.7002. The rate’s recovery off lows gained momentum post the London fix, meeting resistance at $1.7030 ahead of the close. Fresh demand emerged into early Asia which extended the recovery to $1.7034 but momentum quickly faded as rate was dragged lower by euro-dollar slippage, which in turn was led by euro-yen sales. Cable eased off to $1.7018, recovered to $1.7028 during the Asian afternoon before it settled around $1.7025 ahead of the European open. Euro-sterling was contained between stg0.7984-0.79915 through Asia as it continued to consolidate below stg0.8000. UK BBA loans for house purchase (0830GMT) provides the domestic data interest, though of more importance will be BOE MPC members at the TSC hearing, which begins at 0830GMT. Ahead of these events the outside influence seen from Germany Ifo at 0800GMT. Cable support remains on approach to $1.7000 with stronger demand seen into $1.6980. A break here to open a deeper move toward $1.6950 but traders expect decent demand to emerge into dips. Resistance $1.7034-39 (Asia high-76.4% $1.7051-02) ahead of $1.7050 and $1.7061/64 (recent highs).
