The pair closed in NY Tuesday at $1.6664 after rate had retreated from earlier session highs of $1.6716 to $1.6652 after the London fix, recovered to $1.6680 into the NY afternoon before it drifted off into the close. Ukraine reports provided the main directional drivers Tuesday, with a weaker than forecast UK construction PMI release having also aided the corrective pullback (the number softer due to recent flooding in the UK though overall the reading remained strong). Cable consolidated Tuesday’s pullback in Asia with trade contained within a range of $1.6656/73, the rate easing away from $1.6670 to $1.6662 into early Europe. Expect further headline driven moves Wednesday, though the data calendar begins to get more interesting. UK services PMI at 0928GMT, followed by official reserves at 0930GMT, provide the domestic interest, though this afternoon’s US ADP will be in focus ahead of Friday’s key jobs data. EZ svcs PMI data also due this morning with interest turning to Thursday’s ECB rate decision. BOE MPC also have their rate decision Thursday, though no change in monetary policy expected. Euro-sterling remains in familiar territory, Asia range stg0.8238/45.
