The pair closed in NY Wednesday at $1.6797 after rate had rallied strongly to $1.6818 following release of stronger than forecast UK jobs data, the ILO jobless rate easing to 6.9%. Corrective pullbacks held above $1.6780 (23.6% $1.6657-1.6618) and kept the underlying tone buoyant, the rate able to touch $1.6815 during the NY session but strong offers between $1.6815/25 capped. Euro-sterling, which had been pressed to extended lows of stg0.82205 into the European close, finished the session just off lows at stg0.8224. Sterling was in consolidation mode in early Asian trade, cable held between $1.6795/00, euro-sterling around stg0.8225, before market reacted to a UK press article (Daily Telegraph) suggesting that Wednesday’s jobs data could bring forward thechance of a rate hike to next year. This sparked the demand that enabled rate to take out resistance at $1.6815/25 and pushed rate on to $1.6838 as stops were triggered through $1.6825/30. Euro-sterling was pressed to extended lows of stg0.82155, meeting support from bids placed between stg0.8215/05. Cable settled between $1.6828/38 in Asian afternoon trade, while the cross corrected back above stg0.8220. A light UK data calendar as we head into the Easter weekend.
