The pair closed in NY Wednesday at $1.6370 having reversed off an early US session high of $1.6436 to trade to extended lows of $1.6323 as market moved in to buy dollars across the board on reaction to the release of stronger than forecast PPI (with possible signal for today’s US CPI release) and NY Empire data. Cable managed to edge back to $1.6379 during the NY afternoon, found support above $1.6350 ahead of the close. Cable came under fresh sell pressure into early Asia as rate sank back to $1.6347 before it recovered back to $1.6375 on the back of sterling-Aussie buys following the release of much weaker than expected Australian jobs data. However, these recovery gains proved difficult to maintain with rate pressed back to the $1.6350 area late Asia,opening Europe around $1.6362. Euro-sterling, which had seen lows Wednesday ofstg0.8286 before recovering to stg0.8330, consolidated in Asia between stg0.83095-0.8331, opening Europe around stg0.8325. A light domestic calendar today with moves to come from UST yields and equity market performance. Germany and EZ CPI the interest this morning, US CPI into the afternoon. Cable offers $1.6380, $1.6395/410. Support $1.6325/20, $1.6305/00
