The pair closed in NY Wednesday at $1.5237 after rate had failed to extend its earlier recovery back above $1.5300, the rate before settling between $1.5225-50 into the close. Rate edged to a high of $1.5250 in early Asia before momentum faltered and it eased off to $1.5217, settling around $1.5220 through to the European open. Euro-sterling, which had seen extended 7-year lows of stg0.7385 during Wednesday’s European morning, saw a late session spike higher to stg0.7447 on reports of a Greek debt deal. However, this news proved incorrect and rate dropped to stg0.7420 into Asia, the rate recovering to stg0.7430/35 through the balance of the session, opening Europe around stg0.7432. Domestic focus turns toward today’s release of the BOE Quarterly Inflation Report (QIR) at 1030GMT. Most expect near term inflation expectations to move down to 0.0%, possibly into deflation, but most will concentrate on forecasts for the 2-year outlook with expectations this could be moved up to 1.8-2.0% which in turn could bring in rate hike forecasts from current mid-2016. Recent sterling strength appears to be positioned for this outcome. Cable support $1.5200/1.5195, $1.5170/65. Resistance $1.5300, $1.5320-50.
