The pair closed in NY at $1.6855 after rate had seen extended lows of $1.6821 earlier in the day on the back of weaker than forecast IP/Mfg data before it managed to recover through the balance of the day to a high in the NY session of $1.6858. Rate marked early lows in Asia at $1.6849 before the recovery extended on to $1.6865 before settling between $1.6850/60 ahead of the European open. This recovery tracked euro-dollar’s stronger upside correction, with euro-sterling holding toward Wednesday’s high of stg0.7945, the rate consolidating between stg0.79385-0.7944 in Asia. Focus today turns to the BOE MPC rate/QE decision(1100GMT), though no change widely expected, followed by the ECB rate decision(1145GMT) and more important ECB Draghi pressconference(1230GMT). Cable demand remains around $1.6850, more toward Wednesday’s lows of $1.6821 with stronger interest remaining from recent lows of $1.6812 through to $1.6800, the area also covering the 76.4% retrace of the move up from $1.6693 to $1.7192 at $1.6811. Euro-sterling resistance remains at stg0.7945/50 ahead of stg0.7960/65 and stronger area between stg0.7980/85. Support stg0.7925-20.
