The pair closed in NY Thursday at its intraday low of $1.5826 after rate had been pulled lower by the sharp fall in euro-dollar following ECB Draghi’s comments at the ECB press conference that the Bank was ready to act and targeted balance sheet expansion to March 2012 levels. Euro-sterling did divert some of the euro sell pressure, but again met decent demand around stg0.7800, touching a low of stg0.7799 before it edged back to stg0.7830, closing the day at stg0.7818. Cable managed to recover to $1.5848 in early Asian trade but struggled to hold gains and it slowly drifted lower to a fresh 2014 low of $1.5817. Rate was trading around $1.5825 ahead of Europe. Euro-sterling consolidated between stg0.78125-0.78225 through Asia. UK trade data provides the morning domestic data interest, though this afternoon’s key US NFP to overshadow day’s events. Suggestions that the number will surprise to the upside has provided further support for the dollar through Asia. Cable support seen from $1.5817 through to $1.5800, a break to open a deeper move toward $1.5785/75 ahead of $1.5750 and $1.5725/20. Resistance $1.5845/55, $1.5870/80 and $1.5900. Sterling remains favoured vs euro but vulnerable still to dollar strength.
