The pair closed in NY Wednesday at $1.6955 as rate continued to slowly give back Tuesday’s gains, the rate reversing away from Tuesday highs of $1.6997 through Wednesday to a session low of $1.6952. Rate edged back to $1.6958 in early Asian trade before it retested Wednesday’s low. Release of strong Australian jobs data saw rate bounce back to $1.6958 but this move proved short lived as sellers emerged again to press rate down to $1.6944 before it settled back above $1.6950 into Europe. Position adjustment ahead of today’s key UK BOE MPC and ECB rate decisions (no change in BOE widely expected) with press reports suggesting that cracks are beginning to appear in US Pfizer’s takeover bid for UK AstraZeneca (The Times) as they face hurdles from public, political and scientific opposition, also seen weighing. Technically while rate can hold above the $1.6945/40 area it keeps the underlying tone buoyant, with the $1.7000/10 area remaining in view, a break to open potential for a move toward the Aug 2009 high of $1.7044. A break below $1.6940 to open a deeper move toward $1.6910/00 ahead of $1.6885/80. Halifax house price data due at 0700GMT ahead of BOE announcement at 1100GMT.
