The pair closed in NY at $1.6680 following another volatile session that had seen rate rally to $1.6724, drop back to $1.6642 before it picked up fresh demand into the London 1600GMT fix which saw it rally back to $1.6728. Post fix rate drifted off to $1.6663 before recovering into the close. Traders cite the management of the Verizon-Vodafone redemption flows for the erratic moves, making play in cable very difficult to read. Cable eased from $1.6685 to $1.6670 in early Asia before rate settled between $1.6672/82 through the balance of the overnight session, with rate trading around $1.6678 intoearly Europe. UK Q4 second reading of GDP at 0930GMT the focus in Europe. Most expect no revision to initial 0.7% Q/Q reading, though some see that the recent production short fall could act to press it down to 0.6%. However, economistssee the final number higher at 0.9% when we get to that release. M&A flows expected to continue to play its part, the NY option cut having notable large expiries with strikes at $1.6650 and $1.6600. Cable resistance seen at $1.6685, more between $1.6695/05 ahead of stronger area between $1.6728/38. Support $1.6662 (76.4% $1.6642-1.6728; NY pullback low off $1.6728), $1.6640
