The pair closed in NY Monday at $1.6428 after rate had extended its recovery off earlier Asian lows of $1.6316 to a high of $1.6433, seen in the NY afternoon. Cable consolidated this late move in early Asian trade with early business transacted between $1.6420/30. Stops in euro-dollar and euro-yen were targeted at $1.3750-55 and Y142.00 respectively, which in turn provided the momentum for cable to move through its recent highs of $1.6437-43 to take out the barrier at $1.6450 and extend on to $1.6466. The corrective pullback found support at the broken $1.6450 level before rate extended the topside to $1.6468 Asian afternoon trade. Rate was trading around $1.6456 into Europe. Euro-sterling was held within a tight stg0.83545/0.8365 range, trading aroundstg0.8357 into Europe. Investment flows into year end appear to be the underlying driving force for the euro and sterling. In the UK today we have mfg/IP data at 0930GMT. Traders note that these are the first data to reflect Q4 growth, this after BOE Carney last night gave an upbeat speech on growth and productivity, though signalled a rate hike not any time soon. Cable offers seen placed between $1.6470/80 ahead of next barrier at $1.6500. Support $1.6410/00.
