The pair closed in NY Tuesday at $1.6586 after rate had seen extended lows of $1.6545 (bids had been reported between $1.6555/45) before it recovered through the NY session to $1.6594 before drifting off into the close. Rate closed above 50-dma and 55-dma levels at $1.6558-48, those averages today at $1.6560 and $1.6547. Euro-sterling continued to reflect the current softening sterling tone as rate extended recent recovery to stg0.8400, closing the day at stg0.8395, with Asia consolidating this move overnight between stg0.83895-0.8400. Cross offers remain at stg0.8400, with interest seen tostg0.8410, decent stops above. Cable marked overnight lows at $1.6584 in opening Asian trade before it edged to $1.6604. A sharp reversal saw it back retesting early lows before it settled between $1.6588/98 through the balance of the session. Focus today on UK employment report (forecast 7.2%) and BOE Minutes at 0930GMT (nothing major expected). These events to be followed by the UK Budget (1230GMT). Market will also have in mind BOE Carney comments last night that UK rates will remain low for foreseeable future. Cable support remains into $1.6545, resistance $1.6605-20.
