The pair closed in NY Tuesday at $1.6839 after rate had rallied earlier in the day from $1.6802 to $1.6870, as traders reacted to stronger than forecast UK inflation data, only to drop back to $1.6823 on profit take supply. Rate recovered to $1.6849 into the London fix before it drifted off into the close. Euro-sterling, which had extended its 2014 lows to stg0.8119 on the data release, closed in NY around stg0.8135, with Asia consolidating this recovery between stg0.81345-0.81425. UK retail sales data due up at 0830GMT and expected to show an improvement, with interest also on the release of the BOE Minutes at the same time, though after last week’s QIR no major surprises expected, though interest will be on any voting split. FOMC Minutes at 1800GMT provide the later interest in an otherwise data light day. Resistance in cable remains on approach to $1.6850, a break to expose Tuesday’s high at $1.6870, with offers seen from here to the May14 high at $1.6875. Further offers noted between $1.6880/85, abreak here to then expose stronger area between $1.6900/05. Support $1.6825/15, a break to open a deeper move toward $1.6805/00.
