The pair closed in NY at $1.5637 after rate had extended its corrective pullback, from early session highs of $1.5747, to $1.5602 in NY. Rate recovered to $1.5677 post London fix before rate settled around $1.5635 into the close. Rate edged to $1.5648 in opening Asian trade, dipped to mark session lows at $1.5635 before it picked up demand through the balance of the session, the move tracking euro-dollar’s recovery, to $1.5663($1.5665 76.4% $1.5677-28), the rate holding firm into Europe. Resistance remains at $1.5675/80, a break to expose $1.5692(61.8% $1.5747-1.5602), offers noted through to $1.5700, ahead of $1.5713(76.4%). Support $1.5635/25 ahead of stronger demand into $1.5600. Attention today on UK inflation data at 0930GMT, with the recent fall in oil expected to ease the headline CPI to 1.2% y/y, from previous 1.3% y/y. Eurozone flash PMI’s will also be of interest with euro-sterling in focus. This pair extended its recovery Monday to stg0.7973, off an early session low of stg0.7908, with some linking move to possible M&A flows linked to BT’s interest in EE. The cross consolidated Monday’s recovery between stg0.79525-0.7957 after closing Monday around stg0.7952.
