The pair closed in NY Friday just off its session lows of $1.5327 at $1.5328 after rate had been pressed down from opening highs of $1.5585 following the release of weaker than forecast mfg PMI data with rate also pulled lower by continued slippage in euro-dollar though the recovery in euro-sterling from lows of stg0.7745 to stg0.7833 in NY also reflected the pressure on the pound. Rate traded a tight range around $1.5330 in opening Asian trade before euro-dollar again led rate lower as it broke below $1.2000, trading down to $1.1861, which in turn pulled cable down to extended lows of $1.5185. This sharp move lower overtook euro-dollar and allowed the cross to print an extended high of stg0.7850, but sterling quickly regained composure with cable able to recover $1.5316 before it settled around $1.5280 ahead of the European open. Euro-sterling dropped back from its highs before settling just above stg0.7800. UK construction PMI due at 0930GMT, along with Lloyds Business Barometer, provide domestic data interest, though main focus this morning will be on Germany CPI releases. Cable support $1.5265-50, resistance $1.5315/20 ahead of $1.5350.
