The pair closed in NY Thursday at $1.5087 after rate had recovered off 18-month lows of $1.5034, posted during the European morning, to a NY high of $1.5118 before it drifted off to $1.5080, edging to $1.5090 ahead of the close. The paring back of dollar longs was reportedly linked to traders adjusting exposure ahead of this afternoon’s key US NFP release (1330GMT; median forecast 240k). Cable initially dipped to $1.5078 in opening Asian trade before it picked up fresh demand that lifted it up to $1.5104. Rate pulled back to $1.5090 before it edged back to $1.5101, settling around $1.5100 ahead of the European open. Euro-sterling pulled back from a high of stg0.7855 Thursday to stg0.7806 before closing the day at stg0.7817, with trade in Asia consolidating this move between stg0.78145-0.7825. UK data interest includes trade data along with Mfg/IP numbers at 0930GMT. The latter two expected to prompt some activity though any reaction to be overshadowed by the later US jobs numbers. Sell on rallies continues to be favoured in trader reports this morning, one hoping that squeezed short positions (entered at lower levels) could prompt a move toward $1.5200 where they would be comfortable re establishing shorts.
