The pair closed in NY Wednesday at $1.5232 after rate had bounced between $1.5174-$1.5273 with the softer euro, following release of weaker than forecast Germany GDP data, provided buoyancy for cable and a counter to dollar strength. Strong UK jobs data and an upbeat BOE Inflation Report also aided sterling, though traders continue to suggest that cable has room for lower levels, but this could remain tempered in part by further slippage in euro-sterling (EZ CPI in focus this morning, a weak release could highlight the dovish tone in Europe versus the more neutral tone in the UK). Cable initially dipped to $1.5224 in opening Asian trade before bouncing back in tandem with euro-dollar to $1.5248. Failure to break above $1.5250 prompted a reversal which saw rate press down to extended pullback lows of $1.5216 before it settled around $1.5230 ahead of the European open. Euro-sterling was contained within a range of stg0.8450/58 allowing cable to track euro-dollar moves. A light UK data calendar, car production due for release around 0830GMT, so expect moves to come from outside influences. Cable support seen at $1.5205/195 ahead of $1.5180/70. Resistance $1.5250, $1.5265/80.
