The pair closed in NY Tuesday at $1.5188 after rate had extended its recovery to a high of $1.5223 with the dollar paring back recent gains following the release of poor durable goods data, prompting traders to adjust long dollar positions ahead of tonight’s key FOMC announcement. The late NY corrective pullback continued in Asia, from an early posted high of $1.5196, the rate easing off to $1.5155 before it settled between $1.5159/72 through to the European open. Euro-sterling, which had seen a volatile session Tuesday, rising to stg0.75115 before bouncing twice off a base at stg0.7462 through the NY session, closed the day at stg0.7493. Sterling demand in Asia allowed the cross to ease to stg0.7473 but was trading back around stg0.7490 into Europe. A fairly light data calendar with all focus on tonight’s FOMC, the market tending toward the dovish side with mentioned position adjustments underlining this view. Any hint that a mid year rate hike is still being considered will see a quick return to the dollar. Cable support $1.5155 through to $1.5140, a break to open a deeper move toward $1.5125/20 ahead of $1.5100. Resistance remains into $1.5200, a break to open a move back toward Tuesday’s high at $1.5223.
