The pair closed in NY Wednesday at $1.6990, euro-sterling at stg0.7995. In the European morning, cable slipped on release of BOE Minutes to $1.6948 after a 9-0 vote to keep rates on hold. It then spiked to $1.7005 on the accompanying statement that the BOE was surprised by low probability attached to 2014 rate rise. Momentum stalled and the rate pared gains to sit heavy ahead of the FOMC. Amid choppy trade the rate slipped to $1.6919 on release before an immediate bounce to $1.6975. Selling pressure re-emerged before second wave demand extended to $1.7001 into the close. Euro-sterling reversed off post react FOMC highs of stg0.8018 to make a show back under stg0.8000. In the aftermath of FOMC Asia witnessed a very quiet session across all FX currency pairs as markets remained in consolidation mode. Cable was given a lift to $1.7004 in early dealings on euro-dollar’s re-test of $1.3600, failure to break the leveltriggered profit take sales and the pair dipped back under $1.7000. Flat trade then ensued tied to a narrow 8 pip range. Offers are reported at $1.7015/20, stronger behind on approach to the $1.7050 barrier. Euro-sterling saw light volumes with gains capped ahead of stg0.8000, last at stg0.7998.
