The pair closed in NY Tuesday at $1.5163 after rate had bounced off its UK CPI react low of $1.5077 to $1.5190 (post London fix). Rate eased off $1.5145 before recovering to $1.5168 then drifted off into the close. The sharp recovery was seen on the back of heavy euro-sterling sales which had seen the cross drop back from its react high of stg0.7830 to stg0.7757, closing the day at stg0.7765. Cable picked up fresh demand into Asia, which took it up to $1.5176 as the cross squeezed back down to stg0.7759. Cable eased back to $1.5145, as the cross bounced to stg0.7775, but bounced again to $1.5171, this time led by euro-dollar’s recovery, but with euro-sterling also pulled higher on the euro recovery (trading to stg0.7779 into Europe) it faced a counter which eased it back around $1.5160 into Europe. Sterling has enjoyed decent underlying demand interest since last Friday, traders have commented, with dips quickly attracting buyers. BOE Carney comments post CPI data putting off any idea of an increase in QE, while markets await ECB’s decision on this, was seen aiding the pound’s post data recovery. Cable offers remain $1.5190/1.5205, with stops mixed in above $1.5200. Support $1.5145/40.
