The pair closed in NY Friday at $1.5395 after rate had consolidated Thursday’s rally above $1.5400 between $1.5370-1.5422. Friday’s session was subdued ahead of the long US weekend (Presidents’ Day today), Ukraine cease fire Sunday and today’s Eurogroup meeting concerning Greece. Cable nudged higher in early Asian trade, settling for a while between $1.5415/30 before it dropped to $1.5395 at the Tokyo open then recovered through the balance of the session to $1.5437(76.4% 2015 range $1.5587-1.4952), the rate holding firm into Europe. Sterling strength through Asia was seen as a reaction to weekend press comments from MPC members Weale and Broadbent, Weale – “In my own view, rates will also have to rise somewhat earlier than market participants currently expect”, Broadbent – “The MPC still believes that the next move in interest rates is likely to be up. But you are right we took the opportunity to say the effective lower bound (for rates) is somewhat lower than we thought it was 3-4 years ago”. A light UK data calendar today with Tuesday offering CPI, Wednesday jobs data and MPC Minutes (divergent views expected after last week’s QIR release). Offers $1.5437 ahead of $1.5450. Support $1.5380/70.
