The pair closed in NY Wednesday at $1.6575 after rate had spiked to intraday highs of $1.6588 following the release of strong UK employment data, the result of which had analysts bringing in their forecasts for a UK rate hike. This corrective pullback off those mentioned highs extended in early Asia to $1.6558, recovered to $1.6577 into the Asian afternoon before rate drifted back off to the earlier lows ahead of Europe. Euro-sterling, which had been pressed through support at stg0.8200 Wednesday, saw lows of stg0.8168 in this session, with rate consolidating this move through Asia between stg0.81725-0.8180. Strong demand at stg0.8165/60 (61.8% stg0.7755-0.8815) seen as next area to break for further sterling gains. BOE Fisher speaks at 0900GMT ahead of UK CBI sales at 1100GMT and provides the morning’s domestic focus. EZ flash PMI’s provide the main market interest. Sterling remains in favour with traders awaiting next key UK data to see if they support further the analysts’ view that a UK rate hikecould come sooner than 2015. Cable offers seen from $1.6588 through to stronger interest at $1.6600/05. Support $1.6560/50 ahead of $1.6535, $1.6520 and $1.6505/00
