The pair closed in NY Tuesday at $1.6049 after rate had been given a boost earlier in the session to $1.6063 on release of stronger than forecast UK services PMI data. Rate found support in NY at $1.6020 on the corrective pullback before consolidating between $1.6035/50 through the balance of the session. Rate retained an underlying buoyant tone into Asia, lifted to $1.6054 before getting driven up to $1.6097 as stops above $1.6070 were targeted and triggered. Rate holds above $1.6080 ahead of the European open. Euro-sterling managed to extend its break under stg0.8400 to stg0.8386 (NY low stg0.8393), recovered to mark an overnight high at stg0.8404 before settling back below the figure again ahead of Europe. UK Halifax House Price data due at 0900GMT but UK IP/Mfg data at 0930GMT will provide the main focus. Marketexpecting some retrace in August’s surprisingly weak showing. Outside interest will be on EZ services PMI, EZ retail sales and Germany Factory Orders. Cable offers seen into $1.6100, a break to open a move on toward $1.6120 ahead of $1.6140/50. Support now seen at the 21-dma at $1.6064 ahead of the overnight low at $1.6042, with stronger demand seen into the NY pullback low at $1.6020.
