Closed in NY at $1.5632 after rate bounced from a low of $1.5518 to $1.5655, the move up boosted by the release of weak US retail sales with market aware that the Fed’s future policy is data dependent. On this point, this afternoon’s testimony from the Fed’s Bernanke will be watched, the market Monday buzzed with talk of a possible cut in the IOER. Cable continued its corrective pullback into early Asia before buyers emerged to base the move at $1.5626. Rate recovered, tracking EUR/USD rally, as the cross consolidated Monday’s extended move down to stg0.7832 between stg0.78475-0.7854, pushing to a high of $1.5677. Offers placed on the approach to $1.5680 countered the move and allowed rate to drift back to $1.5650 into early Europe. Domestic focus today seen on UK inflation data at 0830GMT. Germany ZEW and US CPI also of interest ahead of key Bernanke testimony at 1400GMT. Cable offers remain into $1.5680, with further interest seen at $1.5687 (76.4% $1.5778-1.5393). Support $1.5650 ahead of $1.5625/20 and $1.5610/00. EUR/GBP bids stg0.7832 to barrier at stg0.7825. Offers stg0.7860.
EasyForexNews Research Team