Closed in NY at $1.6024 after rate had recovered off a NY low of $1.5992 to $1.6033 before easing off into the close. Rate continued to slip lower into Asia, tracking early pressure on the euro as the cross pivoted stg0.8150 in a tight stg0.8145-54 range, posting an overnight low at $1.6005 before bouncing back to $1.6022. Rate again drifted off in the Asian afternoon, finding support around $1.6008 before recovering ahead of the European open, currently trading around $1.6016. BOE rate decision due at 1200GMT, though they are widely expected to keep rates/QE unchanged. Some are seeing potential for QE to be increased going forward. The ECB rate decision/press conference at 1245/1330GMT seen key on the day, especially Draghi comments. At 0700GMT the ONS releases its recommendation on potential changes to the RPI methodology. Though cable traded with a soft tone Wednesday it was noted that decent sovereign demand helped to cushion the pullback below $1.6000. Bids currently seen between $1.6005/1.5990, a break to open a move to $1.5965/60 ahead of $1.5950/40. Resistance $1.6030/35 ahead of $1.6050/55.
EasyForexNews Research Team