The pair closed in NY Thursday at $1.6784, euro-sterling at stg0.8274. Cable had seen highs earlier Thursday at $1.6821, holding just shy of 2014 highs of $1.6823, before it eased off to $1.6754 following the BOE MPC announcement of no change in rates/QE(though widely expected-real money were noted sellers). Rate managed to recover to $1.6790 in the NY afternoon, though trailed euro-dollar’s stronger recovery, which in turn allowed the cross to trade to extended recovery highs of stg0.8279. Cable touched a high of $1.6790 in early Asia before turning lower, the rate finding support at $1.6767 (61.8% $1.6754-90) before it settled around $1.6770 ahead of the European open. Euro-sterling extended its recovery to stg0.82845, with rate holding firm intoEurope. Noticeable that cable has been struggling to retest the $1.6820/25, which is allowing the cross to edge higher, though traders still call this rate lower, but will be wary of going short while the euro continues to post general gains, the market now tending to ignore ECB rhetoric and want physical action. UK construction data at 0830GMT the morning focus. Cable offers $1.6800, $1.6820/25. Support $1.6755/45.
