The pair closed in NY Thursday at $1.5442 after rate had been pressed to lows of $1.5426, the move seen pressured on large dollar program demand. This pullback seen after rate had seen highs earlier in the session of $1.5589 post better than forecast UK IP/MP, and the reaction to the BOE MPC leaving rates/QE unchanged. Trade in Asia consolidated this move, trade overnight contained within a tight range of $1.5437/57, while euro-sterling was held between stg0.8433/47. UK domestic data includes trade balance and construction output at 0830GMT. However, after such a big dollar move expect crosses to take prominence in Europe as these rates adjust, and on this note traders have suggested that the decent support seen in recent sessions ahead of stg0.8400 could allow for a stronger recovery, though still seen needing a clear above stg0.8500 to confirm. Cable demand at $1.5520, $1.5500 ahead of $1.5480 should provide cushioning, with resistance now seen at $1.5455/65 with stronger interest then noted between $1.5490/1.5510.
