On FOMC release cable slipped from $1.5670 to $1.5590 as the dollar found support across the board. With US yields extending sharp gains the rate collapsed through $1.5500 to lows of $1.5450, dropping 200+ pips on the move. The rate later bounced to close in NY at $1.5480. Euro-sterling slipped to stg0.8544, before recovering to stg0.8590 around the NY close, meeting strong resistance ahead of stg0.8600. Cable tracked euro-dollar moves in Asia, the rate opening around $1.5493 eased to $1.5470 on continued reaction to the FOMC rate decision and statement. Dip demand bounced off lows but with lack of follow through and a failed attempt to break back above $1.5500, rate drifted lower through the Asian afternoon. Trade was tied to a narrow $1.5432-61 range, sitting heavy near session lows ahead of Europe. Euro-sterling consolidated post NY gains settling in a tight stg0.8580-90 range throughout the session. Main highlights today are UK Retail Sales data at 0830GMT.
