Soft UK PMI Construction data extended the corrective pullback through $1.5700 on Tuesday. The underlying tone continued heavy into NY and with persistent dollar demand slipped to extended lows of $1.5632, before support in the dip cushioned into the NY close. Euro-sterling reversed off US highs of stg0.7941 to stg0.7913. Sterling witnessed a subdued Asian session overnight as focus remained on the yen and aussie. Cable slipped to early session lows of $1.5634, before dip demand countered with a move to $1.5650. Failure to extend gains prompted light profit take sales and the pair settled in a narrow 10 pip range throughout the Asian afternoon. The downside is seen supported at $1.5628 (76.4% $1.5586-1.5763), bids behind on approach to $1.5610/00. Euro-sterling trade was contained within a narrow 5 pip range, before broad euro slippage eased to stg0.7910. Strong demand is seen on approach to stg0.7900. In the UK focus turns to the release of Services/Composite PMI data at 0930GMT, followed by the Autumn Statement at 1230GMT which are expected to provide direction.
