The pair closed in NY Thursday at $1.6933, just off intraday highs of $1.6938. Sterling had traded with a firm tone through the day, cable breaking key resistance at $1.6840/45 as euro-sterling broke below support at stg0.8050 to challenge late 2012 lows at stg0.8033. Cable extended this move to $1.6860 on break of $1.6845 ahead of the Mansion House speeches from Chancellor Osborne and BOE Carney. Osborne was first to speak and cable dropped back to $1.6802 on comment that he would give the BOE powers to cap mortgage lending ratios (CitiFX Wire-traders assumed this would take pressure off the BOE to rush to hike rates), before BOE Carney stood up to say that the BOE could raise rates sooner than the market expects. This spiked cable through $1.6900 to $1.6938, while euro-sterling extended its lows to stg0.79995 (a move taking out any barrier interest at stg0.8000). The cross closed the day at stg0.8003. Euro-sterling marked highs at stg0.8008 in opening Asian trade before coming under fresh pressure that took it down to stg0.79915, the move allowing cable to extend its recovery to $1.6972. The recent high at $1.6997 seen in view, with a break of $1.7000 expected. Next support in euro-sterling seen at stg0.7985/80.
