The pair closed in NY Thursday at $1.6636 after rate progressed higher through the intraday session on general dollar weakness, seen as market deleveraged, with the EM markets coming under broad pressure. Rate had seen highs on the day of $1.6644, though struggled to make progress above its 200 month moving average at $1.6636 (which had earlier capped the move). This stalling, as rate tracked euro-dollar’s stronger rally, allowed euro-sterling to extend its recovery off recent lows of stg0.8168 to stg0.8247, though closed back at stg0.8231. UK officials’ rhetoric, reiterating the BOE Minutes, that the fall in the UK unemployment rate would not in itself prompt a hike in rates, failed to dent sterling’s progress higher. However, BOE Carney is due to speakin Davos around 1205GMT and will be watched for any comment on the BOE forwardguidance. BBA house loans provides domestic data interest at 0930GMT. Cable retains an underlying buoyant tone, with broken resistance at $1.6605 now the first level of support, with stronger demand seen at $1.6570/50. Resistance remains into barriers at $1.6650, a break to open a move toward $1.6680 ahead of further barriers at $1.6700. 2011 high at $1.6747 in focus
