The pair closed in NY Tuesday at $1.6828 after rate had been able to recover off post UK GDP react lows of $1.6792 to $1.6848, the correction aided by the downside pressure on euro-sterling, seen after the negative react to soft national German CPI. Cable eased to $1.6822, as euro-dollar continued to slowly slide in the NY afternoon, before rate settled around $1.6825 ahead of the close. Euro-sterling extended its corrective pullback off its GDP inspired highs of stg0.8259 to stg0.8200, closing the day at stg0.8208. Cable eased to $1.6820 (50% $1.6792-1.6848) in opening Asian trade before it edged to $1.6829, the rate holding between $1.6826/29 into the Asian afternoon, but was seen under pressure ahead of the European open, rate currently trading around $1.6825. A light domestic calendar with attention seen on outside influence. EZ flash CPI the key event this morning, ahead of US ADP data into the afternoon and the FOMC policy decision later at 1800GMT. Euro-sterling consolidated Tuesday’s ease to stg0.8200 between stg0.8205/11 in Asia. Cable support remains at $1.6820, a break to open a deeper move toward $1.6813/05 (61.8%-76.4%) ahead of $1.6792. Stronger demand $1.6780/75 with stops below. Resistance $1.6850.
