The pair closed in NY Tuesday at $1.5455 following a whippy session as market reacted to Fed Yellen’s semi annual testimony, the dollar initially gaining a strong boost before paring those gains just as quickly as Yellen was seen not as hawkish as the market had been positioned for. Cable dropped to $1.5403, bounced to $1.5474 before it settled around $1.5450 into the close. Euro-sterling, which had posted fresh 7-7ear lows at stg0.7317 during the European morning, recovered to stg0.73485, dropped to stg0.73205 post Yellen before closing the day at stg0.7338. Rate consolidated through Asia between stg0.73305-0.7343. Cable marked lows in early Asia of $1.5448 before it popped up to $1.5479 as China mfg PMI improved to a 4-month high of 50.1 (though new exports component disappointed) which boosted risk outlook. Pullback to $1.5465 attracted fresh demand as rate lifted back toward $1.5479 into Europe. Offers $1.5480-86($1.5480 Feb18 high/$1.5481 23.6% $1.7192-1.4952/$1.5486 Dec23 low). A break here opens a move toward $1.5500 though progress to this level expected to prove sticky. Support remains at $1.5450/40. UK BBA loans at 0930GMT provides domestic interest. Second part of Fed Yellen testimony at 1500GMT.
