The pair closed in NY Tuesday at $1.5998 having recovered off an early day low of $1.5965 to $1.6016, the move up aided as rate tracked euro-dollar’s stronger recovery on reaction to an ECB source story suggesting discontent with Draghi. However, as euro-sterling picked up recovery momentum it weighed back on cable which pressed rate back to $1.5980 before recovering into the close. This late recovery extended into Asia with rate pushing on to $1.6023 (Bloomberg chart high Nov3, though traded high was $1.6027 that day) before faltering, the rate then performing a sharp reversal ahead of Europe which has seen rate correct back under $1.6000, the move seen as the dollar gains a strong boost, led by dollar-yen, and seen on reaction to US mid-term election results (Republicans taking control of the Senate). Moves overnight have been mainly euro-dollar led with euro-sterling consolidating Tuesday’s recovery to stg0.7854 between stg0.7840/0.78475. UK services and composite PMI data due at 0930GMT and provides the focus for this morning. BOE MPC announcement Thursday but interest turning toward the ECB Thursday and Friday US NFP. Cable support $1.5982/77, $1.5965/60 ahead of $1.5950. Resistance $1.6020/30
