The pair closed in NY at $1.5572 after rate had recovered off NY session lows of $1.5495 to $1.5587 before easing off into the close. This corrective pullback continued into Asia, though at a slow pace, the rate touching an overnight low at $1.5557 ahead of the BOJ policy announcement. The BOJ left rates unchanged, and upped its economic assessment as expected, but failure to extend the duration of its fixed rate funds from 1-yr to 2-yrs disappointed Tokyo markets and led to a strong dollar-yen sell off. This dollar sale knocked across to G10 pairs, spiking cable up to $1.5603 before it drifted back off to $1.5580 where it found support ahead of the European open. Focus this morning will be on Industrial and manufacturing production data at 0830GMT, traders noting that this is the first official set of data for Q2 and expected to influence initial forecasts for GDP in this quarter. Offers seen placed into $1.5610 ($1.5609 61.8% $1.5684-1.5488), a break to open a move toward $1.5620 ahead of $1.5638 (76.4%). Support seen into $1.5550, a break to open a deeper move toward $1.5520 ahead of stronger interest from $1.5500 and seen extending to $1.5485. Euro-sterling stg0.8512/19 in Asia.
