The pair closed in NY Tuesday at $1.5360 after rate had recovered off its intraday low of $1.5344, traded back to $1.5393 post London fix before it drifted off into the close. Rate recovered in Asia to $1.5375 before momentum faded and reversal took it back to $1.5346. Strong demand in this area cushioned the downside again with rate recovering to $1.5355 into Europe. Euro-sterling was contained within a tight stg0.72745/0.7278 range through Asia leaving cable to track euro-dollar moves. UK services/composite PMI’s due for release at 0930GMT and provides the morning’s domestic interest. UK mfg and construction were both stronger than forecast and market will watch to see if today’s data completes that set. However, the approach of the UK election is providing a counter to any positive reacts, a break of the $1.5345/40 area to expose stops though Asian traders report decent demand interest seen placed from $1.5330 through to $1.5310. Euro-sterling holding back below stg0.7300 with longer term technical suggesting potential for deeper downside. Resistance in the cross remains above stg0.7300, support stg0.7245/35 ahead of stg0.7200.
