The European session witnessed a broad sterling rally on Monday and after the release of solid UK mfg PMI data, cable spiked to extended highs of $1.5732. A minor pullback into early NY encountered fresh demand with a move to $1.5763, before a strong US ISM mfg reading pared light gains to close in NY at $1.5737. Euro-sterling reversed from stg0.7976 to close near session lows at stg0.7926. Cable opened in Asia at $1.5735 and with trade initially tied to a narrow 9 pip range, a wave of dollar sales provided fresh appetite with a move to $1.5743. Unable to consolidate gains the pair soon drifted to $1.5725, a minor recovery was countered by renewed selling pressure with a deeper correction to $1.5722. Demand is seen placed on approach to $1.5700, more bids behind through $1.5680/60. Euro-sterling was contained within a stg0.7921-29 range during a very quiet overnight session. Focus turns to the release of UK PMI Construction data at 0930GMT for direction.
