The pair closed on a heavy tone in Europe at $1.5075. The BOE left rates unchanged as expected, however as some traders had suggested the Bank accompanied the decision with a statement. Cable immediately slipped from $1.5260 to $1.5171 on release of dovish comments that warned market rates have risen sharply and sees this weighing on the outlook for UK’s economy. Second wave sales took rate through the $1.5100 barrier to extended lows of $1.5055, before a modest bounce settled into the close. Euro-sterling spiked to 3 month highs of stg0.8632 on the BOE announcement/statement, later paring gains in the European afternoon following ECB Draghi’s press conference and dovish tone to close around stg0.8565. Sterling opened heavy in Asia as traders reacted to the overnight BOE/ECB news, rate pressed from $1.5075 to $1.5026, finding support ahead of techs at $1.5022 (1.618% swing projection of $1.5130-1.5305). Cable extended the recovery to $1.5055 but as momentum stalled settled in a tight range ahead of Europe. The cross bounced to stg0.8587 in early Asia, before paring light gains to settle around stg0.8570-80.
