The pair closed in NY Wednesday at $1.6051 after rate had managed to recover off session lows of $1.6012, the low seen after market reacted to the dovish comments which were in the BOE MPC Minutes. However, the reactive dip was met by decent demand which lifted the rate back up to $1.6078(38.2% $1.6186-1.6012) around the London fix before the rate settled around $1.6050 through the NY afternoon and into the close. Euro-sterling, which had seen extended recovery highs of stg0.79265 on the Minutes’ react, was pulled lower by general euro slippage, marking lows at stg0.7873. Trade through Asia consolidated this move between stg0.7873/83, holding heavy into Europe. Cable trade through Asia was contained within a $1.6040-55 range, with rate challenging the topside ahead of Europe. Resistance in cable remains toward $1.6080, a break to open a move toward $1.6100-20 (50%-61.8% $1.6186-1.6012). Support seen at the Asia low of $1.6040 ahead of $1.6012 with bids seen from here through to $1.6000. UK retail sales the highlight domestic data at 0830GMT, alongside BBA house loans. CBI trends at 1000GMT. Flash PMI’s also due from the EZ. US weekly jobless claims and US ISM provides afternoon interest.
