The pair closed in NY Tuesday at $1.5667 after rate had managed to extend its recovery off post UK IP/MP lows of $1.5630 to $1.5717 (on general dollar weakness, driven by softer stocks and UST yields). Rate pulled back to $1.5651 during the NY afternoon before recovering into the close. This recovery extended in early Asia to $1.5687, as the dollar came under another round of sell pressure into the new day, the move led by the early Asia selloff in dollar-yen. However, the strong bounce back in this latter pair (BOJ announcing to buy around Y50bn worth of ETF) saw the dollar pare losses with cable easing off to $1.5660. Cable picked up fresh demand into the dip and moved higher in tandem with euro-dollar through the balance of the session, retested the earlier high at $1.5687 before edging on to $1.5690 in opening Europe trade. UK domestic interest begins with BOE McCafferty speech to the Institute of Directors at 0800GMT (hawk) followed at 0930GMT by release of UK trade data. Euro-sterling, which saw an extended recovery to stg0.79305 in late Europe/NY, was contained back at stg0.7895/0.79015 in Asia. Cable resistance $1.5690 ($1.5694-1.5704 61.8%-76.4% $1.5720-1.5651) ahead of $1.5717. Support $1.5660/50
