The pair closed in NY Wednesday at $1.5578 after rate had been pressed down to an extended 2014/15-month low of $1.5539 (Dec8 $1.5541)as the dollar was given a decent boost as traders reacted to Fed Yellen comments suggesting a rate hike could be considered after the first two meetings of 2015 (though with economic caveats). The initial FOMC announcement was viewed less hawkish than anticipated with the word ‘patience’ only seen slightly tempering the ‘considerable period’ wording and took cable to $1.5699 before the Yellen Q&A. Cable’s recovery spluttered up from an early Asia low of $1.5564, the rate eventually clawing its way up to $1.5593 before settling between $1.5585/90 into Europe. Euro-sterling, which had seen a volatile swing from stg0.7952 down to stg0.7910 through FOMC closed Wednesday at stg0.7924. Asia kept the pressure on as rate consolidated between stg0.7917/24. Germany Ifo at 0900GMT provides the early interest in Europe but this is followed shortly after by UK retail sales data at 0930GMT. Cable support remains around $1.5540, a break opens a deeper move toward $1.5520 ahead of $1.5500. Resistance seen at $1.5600 ahead of $1.5620.
