The pair closed in NY Tuesday at $1.5159 after rate had eventually trackedEUR/USD’s stronger recovery rally, the rate pushing to a session high of $1.5198, having seen a low earlier in the day of $1.4988. Euro-sterling tripped the reported stops through stg0.7565/75 to take the cross on to an extended high of stg0.75925, closing the day back at stg0.7567. Moves Tuesday were seen as a correction, prompted by the recovery in oil and copper which knocked across to other assets. Cable’s late NY pullback extended into Asia as rate eased off to $1.5139 but the dip attracted fresh demand which took rate back to $1.5177 ahead of the European open. Euro-sterling was confined to a range of stg0.7560-0.75705 through Asia. Expect further position adjustments ahead of Friday’s key NFP, though most trader reports continue to suggest fading the euro-dollar rally above $1.1500, seeing area between $1.5200/50 as a good fade area for cable. For today the more important UK services PMI will be released at 0930GMT and should prompt a reaction (median 56.3 vs last 55.8). Cable resistance remains in place on approach to $1.5200 with stronger interest at $1.5223(Jan27 high). Support $1.5139 ahead of $1.5125/20.
