The pair closed in NY Wednesday at $1.5948 after recovering off a session low of $1.5894. Rate had seen highs earlier in the day of $1.6064, following the release of better than forecast UK claimant count, only to pare these react gains into the NY session on positive activity concerning the US debt ceiling deal with signs that the bill would pass in the Senate. Comments followed that the GOP would not oppose the passing in the House prompted profit taking which allowed rate to recover into the close. Rate edge to $1.5958 in opening Asian trade before easing off to mark overnight lows at $1.5940. Fresh demand emerged which lifted rate to $1.5986 before settling between $1.5970/80 ahead of the European open. Euro-sterling, which had seen data react lows of stg0.8428 Wednesday, recovered through the balance of the session to a NY high of stg0.8489 as euro-dollar’s recovery outpaced cable. The cross consolidatedbetween stg0.84765-0.8482 in Asia with traders maintaining their bearish call while rate holds below stg0.8520/30. UK retail sales at 0830GMT provides domestic interest this morning. Cable offers back in place at $1.6000 with stops above. Support $1.5900/890.
