The pair closed in NY Thursday at $1.6160 after sterling also took advantage of the strong dollar sell off, along with getting a boost on the back of stronger than expected UK retail sales data, which saw the rate push to a session high of $1.6173. The US debt ceiling deal turned attention to the effect the government closure could have on the tapering timetable, with investor confidence into the US also dented with views that the recent problems could be repeated in Q1 2014. Cable began in Asia around its recorded highs of $1.6163, easing off to a low of $1.6142 before settling below $1.6150 through the Asian afternoon. Early demand in Europe sees rate nudge up to $1.6152 though momentum so far not too inspiring after a fairly subdued Asian session. Cableoffers remain in place between $1.6170/80 with offers especially attracted to the 76.4% retracement of the move down from $1.6260 to 1.5894 which comes in at $1.6174 (Thursday high $1.6173). A break here to open a move toward $1.6200 ahead of $1.6220/25 and $1.6250/60. Support $1.6142 (Asia low) ahead of $1.6130/20 and $1.6100. Euro-sterling was contained by stg0.84585-0.84645 through Asia. BOE Dale to answer Twitter questions between 1000-1100 GMT.
