The pair closed in NY Wednesday at $1.6385 after rate had recovered off a NY session low of $1.6328 (seen on react to stronger than forecast ADP data) to a high of $1.6405 as sterling got a late lift on S&P comments suggesting that if recent growth data can be substantiated then it would cause a ratings change (S&P have the UK at AAA, negative outlook). Cable had seen lows earlier in the day on release of softer than forecast services PMI data, with cable marking intraday lows at $1.6326, euro-sterling highs ofstg0.8323. Cable drifted lower into the close with early Asia extending the pullback to $1.6370 on Gotobi Day dollar-yen demand. Rate edged back to $1.6373/83 before getting a late session lift to $1.6389 ahead of Europe. Offers placed between $1.6390/95, a break to open a move toward the NY high at $1.6405. A break of $1.6405/10 to expose the area of recent highs at $1.6437/43, with offers seen from here through to barrier interest at $1.6450. Support remains in place at $1.6330/20. Euro-sterling stg0.82935-0.83075 in Asia. UK Autumn Statement at 1115GMT and expected to underline positive growth outlook, with BOE MPC rate/QE decision at 1200GMT (no change expected).
