The pair closed in NY Tuesday at $1.5423 after rate had pulled back off intraday highs of $1.5480 to $1.5397, as the dollar gained a general boost on the back of strong durable goods and a decent improvement in US consumer confidence, before edging back to $1.5436, then drifted off into the close. Sterling proved to be more resilient than the euro to dollar gains as the cross was pressed to extended lows of stg0.8471, the rate consolidating this move in Asia between stg0.8471-0.84875. Cable extended its late drift lower into Asia, the rate easing off to $1.5404 before edging back to $1.5423. Rate then dropped back to retest those lows before bouncing back to $1.5426 ahead of the European open, with the cross holding just off session lows, stg0.84735 at posting. BOE MPC Miles due to speak this morning at 0800GMT ahead of the BOE Financial Stability Report at 0930GMT. UK Chancellor Osborne to announce government spending at 1130GMT. MS end month model suggests that cable should see demand interest at Friday’s fixings, the view supported by equity and bond activity during the month. Cable support seen between $1.5405/1.5395 with stops placed below $1.5390. Next support$1.5385/75. Resistance $1.5450/60, $1.5480.
