The pair closed in NY Wednesday at $1.6081, having seen data react highs of $1.6118 earlier in the session, post UK IP/Mfg data, before rate settled between $1.6075/95 into the close. Rate saw an early lift to $1.6085 in opening Asian trade, dropping back to $1.6066 (this area contained the base on pullbacks Wednesday)before climbing back through the balance of the session to retest the early high. Rate trades around $1.6084 into Europe. Euro-sterling saw post data lows Wednesday of stg0.8379 before it met decent corporate demand which took it back to stg0.8416 in NY, closing the day at stg0.8404. In Asia the rate consolidated Wednesday’s moves between stg0.84035-0.84105, opening Europe around stg0.8408. Interest rate decisions take prominence Thursday, with US NFP Friday hovering in the background. No change widely expected from the BOE MPC with most attention on the ECB decision and the following press conference after speculation was fuelled for a possible rate cut by last week’s release of soft inflation data. US weekly jobless claims and GDP to provide afternoon interest.Cable support remains at $1.6065/50, a break to open a deeper move toward $1.6020. Resistance $1.6120/25($1.6124 61.8% $1.6260-1.5904).
