The pair closed in NY Wednesday at $1.6691 as rate held just off session lows of $1.6685 after the pound was sold off across the board following the dovish BOE QIR released late in the European morning. Euro-sterling also reflected this sterling sell off as rate pushed up to stg0.8020, with rate consolidating the break above stg0.8000 through Asia between stg0.80065-0.80125. Cable marked a high in Asia of $1.6693, as early trade held a tight range around $1.6690, but dollar demand mid Asia morning pressed rate through the NY base and on to $1.6668 before meeting decent demand. Traders have been reporting bid interest around the 200-dma ($1.6664) with the area between $1.6664/50 now seen key. Rate recovered in line with euro-dollar, settling back around $1.6680 ahead of Europe. A light domestic calendar today with attention on outside influences of EZ Q2 GDP and CPI at 0900GMT. US weekly jobless claims(1230GMT) provide afternoon interest. Cable demand $1.6664-50, then $1.6600. Some analysts suggest a break of $1.6650 to open potential for $1.6460/40. UK CPI and BOE Minutes next week could provide positive surprises and may provide some sterling support. Cable resistance $1.6690/1.6700, $1.6730.
