The pair closed in NY Tuesday at $1.5155 having recovered off a session low of $1.5113 to $1.5190 before drifting off into the close. The move down was seen as a reaction to the release of softer than forecast UK inflation data, which is seen leaving the BOE with room to manoeuvre on further QE if deemed necessary, the recovery on reaction to the less than hawkish comments from Fed Bullard and Dudley ahead of today’s Bernanke testimony and FOMC Minutes. Cable dipped to $1.5148 in opening Asian trade before edging to $1.5175 as it tracked euro-dollar’s recovery, though reaction was tempered as euro-sterling continued its recovery, following Tuesday’s break above stg0.85 to stg0.8522 (closing above its 55-dma and 100-dma lines), pushing on to stg0.8431 and holding firm into Europe. Cable eased off highs through the balance of the overnight session, touching a low of $1.5143 ahead of the European open. UK calendar full of interest, UK retail sales and PSNB due at 0830GMT, along with BOE MPC Minutes, followed by the IMF press conference on the conclusion of the mission fopr the 2013 Article VI Consultations with the UK at 1100GMT. Cable support $1.5140, $1.5115/00, resistance $1.5175, $1.5190/00
