The pair closed in NY Tuesday at $1.6974 after rate had been driven to fresh 5 year highs of $1.6997 on the back of stronger than forecast svcs/comp data, with traders also favouring sterling after an FT report suggested that this week’s MPC meeting should open debate about the timing of a rate hike based on the current housing price ‘bubble’. Move higher met strong resistance from offers placed ahead of a reported barrier at $1.7000, with euro-sterling meeting decent demand around stg0.8195 also helped to counter sterling gains. Trade in Asia saw rate consolidate Tuesday’s gains with business conducted within a tight range of $1.6970/84, while the cross was held between stg0.8200/06. Some traders turning attention on sterling-yen, see uptrend stillin place but note that momentum has faltered. With cable likely to struggle on approach to $1.7000, and dollar-yen open to further downside moves it could act to press back on this cross, and sterling generally. UK new car registrations the domestic data highlight today, with Fed Yellen testimony at 1400GMT seen as the main event. Cable offers $1.7000, $1.7020, stronger into $1.7040/50. Support $1.6970, $1.6950 then $1.6920
