The pair closed in NY Tuesday at $1.6212 after rate was pressed to lows of $1.6166 on end month dollar demand, though the move down was tempered by euro-sterling end month sales (suggested linked to DEFRA farm payments). Rate did recover off traded lows to $1.6230 before rate drifted off into the close. Euro-sterling extended its recent pullback lows to stg0.77665 on those reported end month flows, but also driven by the release of soft EZ core inflation data which prompted a generally weaker euro. The cross recovered to stg0.7794 (where the earlier drop below stg0.7800 had stalled) before closing the day at stg0.7790. Cable nudged back up to $1.6219 in early Asia before reversing, the move down to $1.6179 seen driven by dollar-yen’s move above Y110.00. The corrective pullback in dollar-yen off Y110.09 allowed cable some relief before rate settled within an outside range of $1.6180/1.6200 ahead of the Europeanopen. Euro-sterling touched an early low of stg0.7787 in Asia before recovering, but rate again met decent resistance around the stg0.7794 area. Mfg PMI’s take centre stage today EZ and US, UK mfg PMI at 0830GMT provides the domestic data interest, median 52.7 from 52.5 last.
