The pair closed in NY Monday at $1.5099 after the European morning sell off had seen rate pressed to lows of $1.5028 before recovering back to $1.5117 into NY trade following release of disappointing US retail sales data. This corrective easing extended into early Asia with rate trading to a low of $1.5091 before bouncing back to retest that NY recovery high. Another rejection saw rate drop back to $1.5094. Rate rallied back again to challenge $1.5117 before rate settled between $1.5105/10 into Europe. Euro-sterling in Asia was confined to a tight stg0.8648/54 range. Dollar action remains the key driver with markets awaiting further clarification from the Fed’s Bernanke Wednesday/Thursday when he delivers his Semi-Annual Policy Report to Congress/Senate. For sterling traders will also await the BOE MPC Minutes from new Governor Carney’s first meeting with reaction expected on how Carney voted. If he voted for unchanged rates/QE to be seen sterling positive, with any move by another member to the QE increase camp only to provide a slight counter to this. If he voted for more QE will be seen as sterling negative. Cable offers $1.5115/25, $1.5150 and $1.5170/80. Support $1.5090, $1.5075/70.
