The pair closed in NY at $1.6104 after rate had been pressed down from session highs of $1.6178, initially tracking euro-dollar’s slippage on reaction to headlines that the ECB could be considering easing the discount rate to -0.1% (currently 0.0%), which saw it ease to an initial low of $1.6121 before Fed Minutes release (seen hawkish as suggested tapering could begin in next few meetings, though data dependent) shoved cable to lows of $1.6087. Rate recovered back above $1.6100 into the close with sterling proving more resilient than the euro vs the dollar, with the cross able to extend its recent easing to stg0.8326. The cross closed in NY at stg0.8345 and consolidated through Asia between stg0.83415-0.8349 leaving cable to track further euro-dollar slippage. Cable eased from an early Asia high of $1.6108 to $1.6072, opening Europe around $1.6082. EZ flash PMI readings will provide the general morning focus, withdomestic interest turned to public finance data at 0930GMT ahead of CBI trends. US jobless claims and PPI provide early afternoon interest. Cable support seen into $1.6060 ahead of stronger interest between $1.6050/45. Resistance $1.6110 ($1.6113 38.2% $1.6178-1.6073), ahead of $1.6130.
