The pair closed in NY Wednesday at $1.5277 having seen a strong recovery off extended lows of $1.5130 to $1.5305 following the release of stronger than forecast UK services PMI data (seen relieving suggestions of a dovish statement from new BOE Governor Carney after today’s BOE MPC rate/QE decision – no changes expected). A statement would be unusual after a no change decision, but suggestions have been swirling that Carney could put out something as an introduction to his new position, the market knowing that he is keen on policy transparency. Rate slowly continued to pare Wednesday’s gains through the Asian session, the rate easing to an eventual low of $1.5250, edging back to $1.5265 into Europe. Halifax House Price Index due up at 0700GMT though this will be overshadowed by the BOE rate decision at 1100GMT, followed later by ECB rate decision/press conference at 1145GMT/1230GMT respectively. US holiday expected to make for thin markets with the possibility of volatile reactions. Cable demand remains at $1.5250/40, more at $1.5225/20. Resistance $1.5300/10. Euro-sterling was contained within a range of stg0.8514-21 in Asia, consolidating Wednesday’s sharp corrective pullback from stg0.8575 to stg0.8482.
