The pair closed in NY Monday at $1.6728 after rate had been marked above $1.6700 at Monday’s Asian open on market reaction to BOE Carney comments in the weekend UK press. Rate remained well buoyed above the figure through Monday trade, with trade through the day contained within the earlier Asian range of $1.6710/39. This buoyant tone in cable allowed euro-sterling to track euro-dollar slippage during the NY session, the rate extending its corrective pullback to stg0.7985, off Thursday’s stg0.8037 high. Cable continued to consolidate Monday’s opening break higher between $1.6715/28 in Asia Tuesday, while the cross was contained within a tight stg0.79875-0.79895 band. Focus today turns to UK inflation data with CPI, PPI and RPI all set for release at 0830GMT (CPI median 1.8%yy vs 1.9% last). Cable resistance seen into $1.6740, abreak to open a move on toward $1.6750/60. Support $1.6710/00 with a gap still showing on the charts down to Friday’s NY close at $1.6693. Euro-sterling demandstg0.7985/80, resistance now seen into stg0.8000. BOE Minutes Wednesday remain as background focus.
