The pair closed in NY Tuesday at $1.6884 after rate had recovered through the NY session off a pullback low of $1.6850 to $1.6887. Earlier in the session cable had posted highs of $1.6890 following release of stronger than forecast UK svcs/comp PMI data before it eased to $1.6850 in early NY as the dollar gained a boost on release of strong US non-mfg ISm and factory orders. Cable’s recovery was aided by euro-sterling which extended its pullback from recent highs of stg0.7984, through support at stg0.7930 to stg0.79185. Cable touched $1.6888 in opening Asian trade before it reversed lower, the rate eased off to $1.6870 but held just above its key 100-dma (today at $1.6869; closed above Tuesday $1.6965) which is seen keeping the underlying tone buoyant. Rate then settled between $1.6871/78 through to the European open. Euro-sterling consolidated its Tuesday easing between stg0.7919/24. UK IP/Mfg data at 0830GMT provides this morning’s domestic data focus (median 0.6%mm, 1.5%yy/0.6%mm, 2.1%yy respectively) and expected to provide the next directioanl impetus. UK NIESR to release GDP forecast later at 1400GMT. Cable bids $1.6869, $1.6850, with main demand remaining at $1.6815/00. Resistance $1.6890/1.6900.
