The pair closed in NY Wednesday at $1.5525, off NY recovery highs of $1.5535. Rate had seen highs earlier in the day of $1.5539 before slipping back to $1.5467 in early NY, with rate recovering through the NY session. Fed Yellen’s testimony part2 was seen unchanged from Tuesday and prompted another round of dollar sales. Cable touched a low in opening Asia of $1.5524 before fresh demand lifted rate through resistance in the $1.5535-39 area, with triggered stops above $1.5550 allowing rate to edge on to $1.5554. Rate eased off highs, settling around $1.5540 into Europe. Euro-sterling extended its 7-year lows to stg0.7314 Wednesday, closing the day just off that low at stg0.7317. This late NY recovery managed to extend to stg0.7320 before fresh sellers emerged to take rate to stg0.7309 before settling around stg0.7314 into Europe. Sterling retains its underlying bid tone into Europe. Cable seen needing to break above its 100-dma at $1.5568 to boost further upside potential. Euro-sterling bids seen into stg0.7300 (stg0.7299 = E1.3700). UK Q4 GDP (second read) provides domestic data interest this morning (0930GMT – median unchanged from initial 0.5% Q/Q).
