The pair closed in NY Monday at $1.6404, off NY session recovery highs of $1.6424 with rate basically pivoting $1.6400 through the day within a range of $1.6384-1.6428. Rate edged higher from its opening level in Asia, pushing through Monday’s high and on to $1.6434 before momentum faded. The move up was aided by strong demand for Aussie, strong data releases allowed for a break of $0.9000. Cable eased back to $1.6417 before picking up fresh demand into the dip which allowed rate to nudge back to $1.6427 but early European sellers seen taking advantage of the recovery to sell back, easing rate to $1.6419 at writing. Fed Yellen’s testimony to the House Financial Services Committee, semi-annual report on monetary policy and US economy outlook, the main focus on the day with comments on further tapering to be watched, thoughmost expect no change from the recent Bernanke $10bln taper going forward. Testimony will be released at 1330GMT, with Q&A to follow at 1500GMT which is expected to be the main interest. Cable offers seen into $1.6440/50, stops on a break of $1.6460 ahead of $1.6500. Support $1.6405/00, $1.6385/80. Sterling-yen resistance at Y168.15/30 in view, a break to boost sterling across the board.
