The pair closed in NY Monday at $1.6233 after rate had corrected back from a European morning recovery high of $1.6268 to $1.6221 during the NY afternoon, settling back above $1.6230 into the close. Profit taking cited for this cable pullback, the euro recouping earlier losses which pushed euro-sterling up from lows of stg0.7946 to stg0.7977, the cross closing the day around stg0.7972. Cable traded between $1.6220/30 in early Asia before edging up to $1.6250, the move seen as a returning Japanese market pressed dollar-yen below Y107.00 which prompted general dollar sales. Recovery bounce in dollar-yen from Y106.93 to Y107.24 saw cable pare gains, the rate moving through early Asian lows around $1.6220 to $1.3213, with additional weight provided by euro-sterling as this rate edged up to stg0.7981. UK inflation data at 0830GMT provides the domestic interest this morning, though sterling markets generallyovershadowed by Thursday’ Scottish independence referendum (result Friday morning/betfair betting still favours a No vote 2/7). Cable demand $1.6205/00, resistance $1.6250 (Asia/NY high) ahead of stronger level at $1.6275/85. Cross resistance stg0.7980/85 ahead of stg0.8000, support stg0.7945/40.
