The pair closed in NY Thursday at $1.7134 after rate had initially corrected off Asian highs of $1.7168 to $1.7105, the move down a mix of reaction to disappointing UK trade data and risk off plays prompted by concerns over Portuguese BES debt. However, announcement that BES had sufficient funds, along with a weak US 30-yr auction, led to risk back on, as well as a reversal in the dollar, and took cable up to $1.7143 ($1.7144 61.8% $1.7168-05) before drifting off into the close. Euro-sterling, which had seen extended recovery highs of stg0.7969 on UK data, eased off to stg0.7935 before closing the day at stg0.7942. Cable’s late easing continued into Asia with rateextending the pullback to $1.7120 (61.8% $1.7105-43) where it met support before settling between $1.7130/35 through the Asian afternoon. Euro-sterling consolidated between stg0.79385-0.7944. UK construction output at 0830GMT provides the domestic focus Friday in an otherwise fairly light data calendar. Cable resistance remains at $1.7135/40 ahead of $1.7170/80. Support $1.7125/20 ahead of $1.7105/00. Sterling still holding on to its recent underlying buoyant tone though sentiment seen fading while cable holds below $1.7180
