The pair closed in NY Tuesday at $1.7063 after recovering off a NY low of $1.7042, extending the move, post London fix, to $1.7067. Cable closed again below its key 21-dma, today at $1.7105, which is seen keeping a short term bearish tone on the rate, though the failure to retest Friday’s low of $1.7037 yesterday shows dealer interest to buy into dips. Buoyancy in cable was also provided by euro-sterling as both rates reacted to the stronger sell off in euro-dollar, the cross able to break back below stg0.7900 to retest recent lows at stg0.7889. Asia extended this move lower, sales taking the cross to an extended low of stg0.78855 with rate holding heavy ahead of the European open. Cable initially edged to $1.7068 in opening Asian trade before getting sold down to $1.7059. Buyers quickly emerged to take rate up to $1.7073 into the Asianafternoon, the rate holding firm ahead of Europe. BOE MPC Minutes released at 0830GMT provide the morning focus. Traders expect a unanimous vote to keep ratesunchanged, the main interest will be if there is any hawkish split, though recent weak earnings data may offset the strong UK data and dampen rate hike calls.
