The pair closed in NY Tuesday at $1.6617 after rate extended its UK CPI react sell off ($1.6634) to an eventual low of $1.6611 as markets reacted to stronger than expected US housing starts data, with rate holding heavy into the close. This later dollar demand led easing in cable allowed euro-sterling to ease away from its post UK data highs of stg0.80275 to stg0.80105, as euro-dollar slippage outpaced, closing the day at stg0.8015. Cable slowly drifted to a high in Asia of $1.6625 before dollar demand again emerged, led by dollar-yen as this pair gunned for stops through Y103.10/20, the move taking cable through support at $1.6611 (61.8% $1.6252-1.7192 2014 range) to a low of $1.6603, with recovery efforts ahead of the European open restricted to the $1.6610 area. Talk has emerged that the $1.6600 level holds barrier interest, similar talk in euro-dollar at $1.3300. A break of $1.6600 to open a deeper move toward $1.6585/80. Focus turns to the release of BOE Minutes at 0830GMT with recent hopes that at least one of the MPC members has dissented from the usual 9-0 voting pattern for unchanged rates fading. Any dissent will provide sterling with a boost, 9-0 vote likely to place more pressure on the pound.
