Supported by stronger-than-expected UK PMI Services data and a well received Autumn Statement from Chancellor Osborne, cable lifted to $1.5698 in early NY Wednesday. Offers ahead of $1.5700 countered which saw a correction to $1.5668, before a fresh wave of sterling demand lifted to extended highs of $1.5719. Profit take sales later eased to close in NY at $1.5685. Euro-sterling remained on the defensive and triggered a flurry of stops on the move to stg0.7832. After opening in Asia at $1.5685 cable encountered early demand interest to briefly make a show above $1.5700, before it drifted on euro-dollar’s move to re-test the $1.2300 handle. Rate extended the corrective pullback to $1.5676 and with topside gains limited, it later settled in narrow range trade. Euro-sterling recovered off early lows of stg0.7842, before it stalled ahead of stg0.7850 in a very quiet overnight session. Focus turns to the BOE MPC rate decision at 1200GMT where it almost certain to remain unchanged, traders say.
