The pair closed in NY Thursday at $1.5228 after rate had recovered off a pullback low of $1.5183 having seen react highs of $1.5242 earlier in the session following the release of stronger than forecast UK retail sales data. Recovery extended to $1.5231 into early Asia before rate turned lower, dropped to $1.5197 in line with euro-dollar with dollar moves seen driven by early demand for dollar-yen. A sharp reversal in dollar-yen prompted strong dollar selling across the board and drove cable up to highs of $1.5249. However, this move lagged behind euro-dollar’s stronger recovery which allowed the cross to edge up from its early lows of stg0.86085, extending the correction away from Thursday lows of stg0.8600 to stg0.86255. Cable drifted off to $1.5229 before it settled between $1.5230/40 ahead of the European open. UK public sector borrowing the domestic data highlight at 0830GMT, though main moves on the day to be on outside influences and mainly dollar driven. Resistance remains in place into $1.5250, a break to open a move toward $1.5270 ($1.5269 Jul17 high) ahead of $1.5280/85 ($1.5283 50% $1.5752-1.4814). Support $1.5200-1.5195, with stronger demand noted at $1.5180 ahead of $1.5160/50.
