The pair closed in NY Tuesday at $1.5036 after rate had eased off a session high of $1.5135 to a low, seen just ahead of the close, of $1.5025. Move was seen driven by better than forecast US housing and consumer confidence data, which in turn boosted UST 10-yr yields. Cable remained under pressure into early Asia, the rate extending pullback lows to $1.5019 in early trade before it was able to recover to $1.5038. However, macro and prop account sales of the pair provided the downside pressure during the Asian afternoon to press rate to extended lows of $1.5017, the rate holding heavy ahead of the European open. Moves overnight were generally driven by euro-dollar with the cross holding within a tight stg0.8548/56 range. Cable support remains in place from $1.5015 (76.4% $1.4832-1.5607/$1.5014 Thursday May23 low) through to barrier interest at $1.5000. A break here to expose stops at $1.4995/90, which if triggered to open a challenge on next support at $1.4985/80. Resistance seen at $1.5035/40, a break to open a move up to $1.5070/75. End of month approaching with euro-sterling end month demand likely to emerge, though could be partially countered by end month cable demand. BOE Bean at 0930GMT the early focus.
