The pair closed in NY Friday at $1.5716 after rate basically consolidated recent recovery efforts within a basic $1.5700-50 range (Friday actual range $1.5697-1.5745. Rate saw a quick lift to opening highs in Asia of $1.5742 before rate was sold back into Tokyo’s open, the rate pressed to session lows of $1.5705 before it settled around $1.5710 through to the European open. Fresh demand into the this session has taken the rate back toward $1.5730, the move tracking euro-dollar. UK CBI trends data due at 1100GMT provides the domestic interest, with attention set on Tuesday’s inflation and Wednesday’s jobs report, along with BOE Minutes. US Empire State at 1330GMT followed by US IP/Cap.Ut at 1415GMT then housing data at 1500GMT provide afternoon interest. Cable resistance remains between $1.5745/60, a break to open a push on toward $1.5780/85. Support $1.5700/1.5685. Euro-sterling, which had edged up to stg0.7940 in NY Friday, drifted lower through Asia to stg0.79175, the rate holding heavy into Europe. As markets approach the end Christmas and end of year liquidity has begun to dry up making for added volatility in order driven trade.
