The pair closed in NY Tuesday at $1.6266 after recovering off a session low of $1.6214 to $1.6280 before drifting off into the close. The pound had lost ground Tuesday following the release of softer than forecast UK inflation data, with reported stops sub $1.6260, $1.6240 and then $1.6220 targeted and triggered, with stops above stg0.8465 also tripped as the cross was forced to a high of stg0.8467. These near term downside stops now cleared sees rate fairly clean as market turns its attention toward today’s key UK jobs report at 0930GMT. Cable resumed its recovery through Asia, the rate edging to an overnight high of $1.6290, with pullbacks ahead of Europe so far holding above $1.6280. Euro-sterling consolidated Tuesday’s rally between stg0.8455/65 in Asia, leaving cable to take main direction from euro-dollar moves. Traders continue to favour shorting euro-sterling, most leaving stops throughstg0.8500-25. UK CBI reported sales at 1100GMT only expected to have a limited effect (unless way out of line with median +10) as traders will be turning attention toward this evening’s FOMC decision, with a start to QE tapering still seen in the balance.
