The pair closed in NY Wednesday at $1.6670 after rate had been pressed off highs of $1.6702 to lows of $1.6622 as end month corporate dollar demand, large option expiries and reaction to stronger than forecast US new home sales, had attracted the rate lower. Rate recovered after the London fix, through the NY afternoon to a high of $1.6673 ahead of the close. Rate drifted lower again in early Asian trade, touching a low of $1.6658 before fresh demand allowed the recovery off $1.6622 to extend on to $1.6683 (76.4% $1.6702-1.6622). Failure to build on this move saw rate ease off to $1.6668 (61.8% $1.6658-83), settling around $1.6670 ahead of the European open. Wednesday’s corrective easing had been led by a sell off in euro-dollar, which in turn eased euro-sterling to stg0.8209, off earlier highs of stg0.8252, with rate consolidating this move in Asia between stg0.82065-0.82125. Lloyds business barometer the highlight in an otherwise light domestic calendar with Germany state and national data in focus this morning ahead of Friday’s EZ flash CPIO for Feb. US weekly claims and durable goods at 1330GMT followed by Fed Yellen at the Senate at 1500GMT. End month flows also an influence.
