The pair closed in NY Tuesday at $1.6749 after rate had corrected back from early session highs of $1.6782 to $1.6731. Rate recovered to $1.6756 into the London fix before it settled around $1.6750 into the close. Cable marked highs in early Asian trade at $1.6752 before turning lower as strong demand for dollar-yen emerged, which in turn prompted general dollar strength. Cable eased to an initial low of $1.6720, recovered to $1.6730 before extending lows to $1.6719 ahead of the European open. Rate currently trades around $1.6724. Euro-sterling, which had seen a sharp bounce off lows of stg0.8105 to stg0.8148 on reported ECB fix demand Tuesday, consolidated this move between stg0.81345-0.8142 in Asia. UK services PMI (0830GMT) the morning domestic focus with EZ GDP and PPI following at 0900GMT. However, trade expected to remain range bound ($1.6693-1.6782) ahead of Thursday’s ECB rate/monetary policyannouncement. Cable demand seen into $1.6714 (76.4% $1.6693-1.6782) ahead of stronger area between $1.6695/90. Resistance $1.6752 (50% $1.6782-19; $1.675861.8%; $1.6767 76.4%), with stronger interest at $1.6782 (Jun3 high/50-dma). Euro-sterling in an outside range of stg0.8080/0.8170.
