The pair closed in NY Tuesday at $1.6530, euro-sterling at stg0.8364. The rate had earlier lifted to $1.6510 after release of UK CPI data which came in-line with expectations at 1.7%, the lowest reading since Oct 2009. Gains extended to $1.6530 after a mixed set of US data (strong US Cons Conf vs weak Richmond Fed), before spiking with euro-dollar to session highs of $1.6549. Profit take sales later eased into the close as the pair held above $1.6525 for the first time since Mar 19. Euro-sterling recovered off pullback lows of stg0.8334 after earlier printing a high of stg0.8393. Cable opened the Asian session on a buoyant tone with early support taking the rate to $1.6541 as the pair eyed strong offers ahead of $1.6550. Momentum stalled and as fast money sales emerged to grind euro-dollar lower, cable tracked the move to settlearound $1.6525/30. Traders remained on the sidelines and with lack of data release today amid thin markets, the pair slipped to extended lows of $1.6516. A buoyant sterling on the Asian open pressured the cross before finding support ahead of stg0.8350. The pair consolidated to settle in a narrow 10 pip range as strong offers continue to cap the topside on approach to stg0.8400.
