The pair closed in NY Friday at $1.5160 after rate had recovered through the NY session off its initial react low of $1.5097, seen on release of US NFP data, the strong headline read was then countered by disappointing earning data in the release which prompted a rally to $1.5170, falling just shy of its pre NFP high of $1.5177. Early Asia took the recovery on to $1.5195 but reported offers reported in the area between $1.5185/1.5200 provided a decent counter. Failure to break above the figure prompted a round of long covering which eased rate back to $1.5160. Rate was seen pickling up fresh demand into the dip ahead of the European open with rate currently trading around $1.5170. Euro-sterling, which had seen extended lows of stg0.7784 in early NY trade Friday stg0.7811. Recovery extended in early Asia to stg0.78195, dipped to stg0.7811 during the Asian afternoon before picking up fresh demand into Europe, the rate edging on to stg0.7825. Trader reports continue to suggest selling into cable rallies. Barclays’ idea for the week is to short cable, noting the recent soft run of UK data releases, and highlights Tuesday’s UK CPI release which could come in soft due to oil.
