The pair closed in Ny Friday at $1.5975 after rate had been sold to a session low of $1.5954 following the boost to dollar demand prompted by the release of strong US employment data. Euro-sterling, which had seen highs earlier in the day of stg0.78605 (76.4% stg0.7889-0.77665), retrace back to stg0.7823 into US data, recovered to stg0.7844 before settling between stg0.7830-40 through the balance of the day, closing the week at stg0.7834. Sterling came under renewed pressure into Asia, cable dropped to extended lows of $1.5943, while the cross spiked up to stg0.7845, before sterling demand emerged which allowed cable to recover through Asia to $1.5985, as the crosseased off to stg0.7832. Sterling was holding firmer levels ahead of the European morning. Profit taking on long dollar positions (macro led) was cited for the recovery in cable. A light domestic data calendar today, Germany factory orders the interest in an otherwise quiet day. BOE rate decision Thursday, though no change widely expected. UK IP/Mfg Tuesday, a good part of the recent sterling sell off seen on growth potential. Trade data Friday. Cable offers $1.6000, $1.6030/35, $1.6050/60. Bids $1.5943/38, $1.5900.
