The pair closed in NY Tuesday at $1.6446 after rate had consolidated its earlier rise to $1.6468 with trade through the rest of the day contained within a range of $1.6421-58. Rate picked up fresh demand into Asia, the rate lifting back to retest the NY high at $1.6458 before turning lower and marking overnight lows at $1.6434. Rate then settled around $1.6440 ahead of Europe, with early sales pressing the rate to extended lows of $1.6432. Euro-sterling was contained within a tight stg0.8364/70 range through Asialeaving cable to track euro-dollar moves. Sterling said to retain its recent underlying positive tone, with the pullback Tuesday seen on the back of profit take sales from sterling-yen after this rate had made a brief show above Y170.00. Cable support seen placed at $1.6420, more into $1.6400. Resistance remains into $1.6470, a break here to open a move toward barrier interest at $1.6500. No major UK data on the calendar, though BOE Weale is due to speak at an NIESR event at 1300GMT. Euro-sterling remains supported by general euro buoyancy, but trader reports continue to favour shorting on any moves into stg0.8400/20.
