The pair closed in NY Wednesday at $1.6575 after rate failed to build on its show above $1.6600. Cable touched a high of $1.6606 before easing off to $1.6571 through the London fix with the corrective pullback seen influenced as euro-sterling tracked the stronger recovery in euro-dollar as the cross recovered off its intraday low of stg0.79385 to stg0.7964. Euro-sterling consolidated between stg0.79555-0.7963 through Asia, holding around stg0.7960 ahead of Europe. Cable touched an early low in Asia of $1.6572 before recovering through the session to $1.6605, settling between $1.6595/1.6600 ahead of Europe. NY hedge fund traders Wednesday were reportedly looking for a break of $1.6610 to boost cable recovery, but rate seen meeting stiff headwinds ahead of the level. End month models show strong dollar sell signals, but any benefit to cable upside could be offset by end month demand for euro-sterling. Tradersreport that stops placed above stg0.7970 are seen in decent size. Another data light day for the UK with outside influences to come from Germany state/national CPI (to give a signal for Friday’s flash EZ CPI, key ahead of next week’s ECB meeting) and US weekly jobless claims, Q2 GDP.
