The pair closed in NY Wednesday at $1.6682 after rate had recovered off its post UK employment data react lows of $1.6637 to $1.6724 after Europe closed, pulling back to $1.6684 on reaction to FOMC Minutes, a late recovery to $1.6697 before it drifted off into the close. This corrective pull back continued in early Asia with rate easing to an initial low of $1.6673, recovered to overnight highs of $1.6688 before turning lower following the release of weaker than forecast China HSBC PMI data. This release knocked risk in general and saw cable drop back to $1.6665. However, the dip quicklyattracted fresh demand which allowed rate to recover to $1.6680 ahead of the European open. UK CBI trends data at 1100GMT the highlight of an otherwise very light domestic calendar with focus on Friday’s UK retail sales and public lending data. EZ flash PMI’s from 0758GMT the main interest this morning, followed by US CPI and weekly jobless claims at 1330GMT. Cable support remains at $1.6665 ($1.6658 76.4% $1.6637-1.6724) ahead of $1.6637. Resistance $1.6720/25, $1.6745/50 ahead of $1.6763 (61.8% $1.6823-1.6637).
