The pair closed in NY Wednesday at $1.5957 after rate had recovered off extended lows of $1.5917, the base seen following the release of FOMC Minutes. Rate eased to $1.5950 in early Asia before edging up to $1.5965, falling just shy of the NY recovery high of $1.5968. Cable then turned lower, retested the NY base before extending lows to $1.5914. Rate has since met willing buyers, with demand interest mentioned between $1.5920/00, with rate edging back up to $1.5938 into the European open. Euro-sterling consolidated Wednesday’s corrective rally, which had seen it push up to stg0.8488, with trade overnight contained within a range of stg0.84665-0.8478. Sterling was initiallyknocked lower Wednesday by release of weaker then forecast UK IP/MP data, and with market seen long sterling any further negative data releases could cause further outflows. No change expected at today’s BOE rate/QE decision. Cable offers seen in place on approach to $1.6000.
