The pair closed in NY Wednesday at $1.6624, the rate paring earlier gains that had seen it trade to a high of $1.6665 to an eventual NY afternoon low of $1.6621. The move lower was seen as a reaction to the release of US ADP, the headline release in line but a strong revision to the previous month boosted the dollar. Cable consolidated this slippage in early Asia with trade contained within a tight $1.6621/29 range until markets reacted to (repeated) BOE Carney comments in the UK press that he could not rule out a rate rise ahead of next Spring’s election. Cable spiked to a high of $1.6661 beforemomentum faded and rate dropped back to $1.6631 before it settled between $1.6635/40 ahead of the European open. Euro-sterling, which had seen extended recovery highs of stg0.8308 Wednesday, retreated to stg0.8272 before closing the day at stg0.8280. The positive reaction in Asia to Carney comments saw cross extend this corrective pullback to stg0.8261, recovered to stg0.8275 before settling between stg0.8265/70 into Europe. Services PMI at 0830GMT completes the set ahead of the ECB announcement. Cable retains buoyancy while above its 21-dma at $1.6609, with bids seen into $1.6600-1.6595. Resistance $1.6665/70.
