The pair closed in NY Wednesday at $1.5218 having recovered off a corrective pullback low of $1.5154 (off BOE MPC Minutes inspired spike gains of $1.5268) to $1.5244 as markets reacted to dovish testimony from the Fed’s Bernanke, before it drifted off into the close. Cable touched an early session high of $1.5222 into Asian trade before easing off to $1.5205. A recovery to retest that $1.5222 level was again rejected before rate extended its corrective pullback to $1.5174, with move tracking euro-dollar’s easing below $1.3100, which in turn was led by strong dollar-yen demand. Cable was holding around $1.5180 ahead of the European open. Euro-sterling consolidated its corrective pullback off Wednesday highs of stg0.8712 to stg0.8616 between stg0.8620/29 through Asia, as cable retained some buoyancy, following the positive react to Wednesday’s 9-0 vote by the BOE MPC for unchanged rates/QE, which saw this rate lag behind euro-dollar’s stronger pullback. UK retail sales data provides the domestic interest at 0830GMT with attention turning to US weekly jobless claims at 1230GMT, Phila Fed at 1400GMT. Cable demand $1.5175/70 ($1.5174 Asia low; 76.4% $1.5154-1.5244), $1.5155/50. Resistance $1.5220/25, $1.5245/50.
