The pair closed in NY Tuesday at $1.6573 after rate had recovered off a post UK GDP low of $1.6536 to $1.6614 (though failed to retest early European highs of $1.6627) before it pulled back to $1.6564 during the NY afternoon, recovering late on to $1.6585 before drifting off into the close as traders adjusted positions into the much anticipated Turkish central bank announcement. Cable extended this corrective pullback to $1.6562 in early Asia as traders evaluated the CBT decision to hike interest rates above expected levels to counter the recent pressure on the Try (as well as other EMcurrencies). The move provided a boost to risk and saw cable recover in Asia to $1.6588 before it settled between $1.6570/80 ahead of Europe. Euro-sterling consolidated between stg0.82345-0.8248 having extended its corrective pullback off recent highs of stg0.8305 to stg0.8223 Tuesday. Nationwide house price data due at 0700GMT and provides the early interest in an otherwise UK data light day. PM Cameron PM Questions at 1200GMT followed by BOE Carney at 1315GMT willprovide interest into the afternoon, though FOMC announcement at 1900GMT willovershadow, with market looking for any comment on tapering effects on EM.
