The pair closed in NY Tuesday at $1.5998 after it had recovered from a corrective pullback low of $1.5915, the rate having seen highs earlier in the day of $1.6010 following the release of stronger than forecast UK inflation data. Moves through the NY session were driven by news/comment concerning the US debt ceiling bargaining with late disagreements, and no vote Tuesday, causing the dollar to pare earlier gains. However, underlying optimism that the two sides will resolve this impasse prompted dollar demand into early Asia with cable easing off from an opening high of $1.5995 to $1.5967 (38.2% $1.5915-1.6000). Rate recovered to $1.5985 into the Asian afternoon only to sink back to retest those earlier lows but demand here again cushioned the move with rate edging back to $1.5975 into Europe. Moves through Asia were seen dollar ledas the cross was held within a tight stg0.84565-0.8462 range. UK employment data at 0830GMT to be in focus this morning with another fall in the claimant count expected. Cable sell interest remains in place between $1.6000/20, a break of this area to boost upside potential and expose the $1.6040/50 area. Support $1.5965/55 ahead of $1.5935 (76.4% $1.5915-1.6000) and $1.5915/00
