The pair was pressured to $1.5616 after the release of solid US Retail Sales data on Friday and continued on a heavy tone to take out $1.5600 on the move to 14 month lows of $1.5593. A position squeeze ensued ahead of the weekend as the pair tracked euro-dollar’s sharp move to $1.5694, before it eased into the close. Euro-sterling bounced of post US Retail Sales lows of stg0.7935 to trade at stg0.8000 and held firm into the close. The unexpected soft Japanese GDP reading provided a strong dollar rally in early Asia and as dollar-yen printed fresh 7 year highs of Y117.06, cable grinded to $1.5663. However, unable to consolidate gains the dollar reversed sharply in tandem with the Nikkei as dealers attributed the move to a liquidation of long positions. Cable quickly made a show back above $1.5700 and lifted to extended highs of $1.5737, before momentum stalled. Offers are reported at $1.5740/50, a break opens $1.5767 (50% of $1.5940-1.5593). Euro-sterling tracked euro-dollar to make a brief show above stg0.8000, however with lack of follow through eased to settle around stg0.7980. Offers are seen placed at stg0.8020, key techs behind at stg0.8057 (200-day ma).
