The pair closed in NY Tuesday at $1.5645. The rate pressed to session lows of $1.5565 on strong euro-sterling demand throughout the European morning. The cross stalled at stg0.8585 meeting strong offers ahead of stg0.8600 allowing cable to bounce back above $1.5600. Euro-dollar’s move through the $1.3400 barrier gave a further boost to settle around $1.5640/55. The cross eased to stg0.8562. Cable, along with most major pairs had a lacklustre Asian session with volumes light and traders on the sidelines ahead of the FOMC rate decision and Bernanke press conference later today. Opening around $1.5635 the rate drifted lower finding support ahead of $1.5615, a turn in the Nikkei pressed dollar-yen as cable extended the recovery, consolidating around $1.5635/40. Light offers are reported at $1.5660, ahead of $1.5680/85 ($1.5685 – 5-day ma). Euro-sterling lifted with euro-dollar to stg0.8575 in early Asia, before easing to stg0.8565 and sit at the bottom of a tight range. Strong resistance remains on the topside into stg0.8580/00.
