The pair closed in Wednesday at $1.6982 after rate’s (US GDP prompted) recovery off intraday lows of $1.6952 faltered above $1.7000. Rate touched a late high of $1.7005 before drifting off to $1.6972 post London fix, recovering through the NY afternoon. This late recovery extended in Asia from an early marked low of $1.6981 to $1.6992 with trade through the overnight session described as subdued. Euro-sterling, which had seen highs in NY Wednesday of stg0.8034 consolidated between stg0.8021/28 in Asia. End of month approaches and early model forecasts have been for cable demand to be seen at the fixes, though this could be countered by usual end month euro-sterling buys. Focus today will be on BOE Carney’s commentary which will accompany the Bank’s Financial Stability Report. Market will watch for any moves designed to pre-emptivelyaddress housing market risks, the potential effect could be to push back date forecasts for the rate hike. Cable demand seen in place between $1.6980/70 ($1.6981 Asia low-$1.6972 NY pullback low-61.8% $1.6952-1.7005), ahead of $1.6965 and stronger interest into $1.6950. Resistance $1.7005/15 ahead of $1.7030/35.
