The pair closed in NY Tuesday at $1.5059 after rate had managed to correct off intraday lows of $1.5029 though recovery efforts were capped around $1.5100 (NY high $1.5101). Rate was buoyed by further euro-sterling slippage, real money the noted sellers of the cross as it extended its recent move lower to stg0.7093 in NY, closing the day just off the low. Cable touched an early low at $1.5053 in opening Asian trade before it recovered, moving up to $1.5087 before settling between $1.5060/85. Buoyancy continued to be provided by the cross as euro-sterling turned lower from an initial stg0.7106 high to stg0.70815, the rate holding around stg0.7090 into Europe. Cable trades around $1.5078. BOE McCafferty sounded a hawkish note overnight, suggesting that wages could accelerate to a pace inconsistent with stable inflation. Attention today turns to UK IP/Mfg data at 0930GMT (+0.2% m/m forecast for both), BOE Weale speaks at 1500GMT. Euro activity remains in focus for direction this morning, with attention to turn again to US UST yields into the afternoon. Cable support seen into $1.5050 ahead of $1.5029/25(recent lows). Resistance remains at and above $1.5100
