The pair closed in NY at $1.5295 after rate recovered off extended pullback lows of $1.5275, with offers into $1.5300 capping the recovery effort. Early demand into Asia lifted rate through $1.5300 with momentum able to extend the recovery on to $1.5331. Some potential M&A flows aided the move, traders watching out for developments to reported early talks between UK Severn Trent and Canadian Borealis and the Kuwait Investment Authority. Traders also noted Vodafone’s potential stg2.1bln dividend from its part owner ship in Verizon Wireless, payment to be made in June. Macro sell interest reported to have provided the main resistance overnight at the highs, the rate drifting back to $1.5311 before settling between $1.5311/20. Euro-sterling saw highs in the NY session of stg0.8493, closed the session at stg0.8479 before Asia took it above stg0.8500 and on to stg0.85045 before momentum faded. Rate slipped back below the figure ahead of the European open, meeting support at Monday’s NY high of stg0.8493. Cross offers seen between stg0.8500/10, stg0.8530/35. Cable support seen at $1.5295/90 ahead of $1.5275/65 and $1.5250. Resistance $1.5330/35 ahead of $1.5350/60.
