Closed in NY at $1.5666, the rate having spent Wednesday consolidating above key trend line support at $1.5630, touching a recovery high of recently posted lows between $1.5630/32 at $1.5678. Positioning ahead of today’s appearance of BOE governor in wait Mark Carney in front of the TSC (0945GMT) in focus, yesterday’s slight recovery in sterling seen on suggestions that he may not be as dovish as recent interviews would suggest, though market still holds an underlying bearish outlook for sterling. BOE MPC rate announcement at 1200GMT not expected to provide any change in rates nor QE, though some suggest comment could be made about the maturing stg6.1bln gilt that matures early March which could affect the size of the current stg375bln QE. Cable demand is seen in place into $1.5630, further interest dotted down to $1.5600 with stops below. Resistance seen into $1.5680, with further interest seen placed through to $1.5700. Euro-sterling was contained by stg0.8624/41 in Asia.
EasyForexNews Research Team