The pair closed in NY Wednesday at $1.5233 after rate’s recent recovery, off Tuesday’s CPI react low of $1.5077, extended on to $1.5270 as the dollar came under general pressure following the release of disappointing US retail sales data for December. Rate did pull back to $1.5202 before it edged back to $1.5238 ahead of the close. The NY recovery extended in early Asia to $1.5245 ($1.5270-05) before stalling, with rate then drifting down to $1.5227 ahead of the European open. This easing has continued into Europe with rate extending lows to $1.5224($1.5225-20 50%-61.8% $1.5205-45) where it has met some demand interest though still seen holding heavy. Euro-sterling extended its post CPI ease (from stg0.7830 Tues) to stg0.77255 in Asia with rate also holding heavy into Europe. Support in the cross seen into stg0.7725/20 ahead of stg0.7700. Resistance stg0.7240-60. A light data calendar in the UK today with attention on ECB QE comments from officials. US weekly jobless claims, PPI and Empire State at 1330GMT to provide afternoon interest.
