The pair closed in NY Thursday at $1.6788 after rate had recovered off earlier session lows of $1.6732, seen as rate tracked euro-dollar slippage, though euro-sterling diverted part of this pressure as it extended its corrective pullback from post BOE QIR highs of stg0.8184 to stg0.8144. Cable’s recovery extended through the NY afternoon on the back of softer UST yields, which saw rate push to a high of $1.6806, settling back between $1.6780/00 ahead of the close. Cable’s recovery lagged euro-dollar and allowed the cross to edge back up to stg0.8175 before closing around stg0.8165. Trade through the Asian session was confined to a tight $1.6784/93 range, the cross bystg0.81665-0.8172. A light data calendar in the UK Friday will leave sterling moves open to outside influences. Watch for EZ official comments concerning the next ECB rate meeting, with attention then switching over to UST yields into the afternoon. Cable offers remain in place between $1.6805/20 ahead of $1.6840/50. Support $1.6785/80 ahead of $1.6760/50. Cross resistance remains at stg0.8175 (76.4% stg0.8184-44), support stg0.8145/40.
