The pair closed in NY Wednesday at $1.6040 after rate had recovered off FOMC react lows (seen less dovish than most expected) of $1.5999 to $1.6043. Asia began their session showing decent dollar demand, with analysts suggesting that the Fed could still begin the taper in December (though most still see any move into 2014)which took cable back to $1.6014. Rate recovered to retest the NY recovery high at $1.6043 before turning lower, the move down given added weight as euro-dollar was knocked by reported comments from ECB Nowotny, the rate trading to a low of $1.6009 (76.4% $1.5999-1.6043) before settling between $1.6010/20 ahead of Europe. The move to the lows was tempered in part as the cross extended its corrective pullback, from recent highs of stg0.8585, to stg0.8551, trading around stg0.8555 into Europe. GfK UK confidence data released overnight fell 1pt to -11 though had little impact. Nationwide house price data at 0700GMT the early domestic interest, though Germany retail sales at same time could overshadow. US weekly claims into the afternoon and the Chicago Report the afternoon focus, along with end month fixings which are expected to prompt dollar sales.
