The pair closed in NY Tuesday at $1.5904 after sterling has lost ground through the day, with rate touching an eventual low of $1.5897 ahead of the close. Sterling sell off was given added weight by the release of soft UK CPI data, added to by a recovering dollar through the NY day. Euro-sterling reflected to weaker tone of sterling earlier in the day as it extended its recent rally to stg0.7962, though this rate was able to correct back tostg0.7945 before edging back toward the highs late in NY. Cable’s slide continued into Asia as rate was pressed to extended lows of $1.5878, the move seen influenced by strong demand for the dollar, though move trailed euro-dollar’s stronger easing, which in turn allowed the cross to ease through the Asian session from early highs of stg0.79605 to stg0.7948. The ease in the cross allowed cable to recover to $1.5913, the rate holding between $1.5900/10 into Europe, while the cross held heavy on its Asian base of stg0.7948. UK employment report at 0830GMT moves into focus, followed by key US retail sales at 1230GMT, along with PPI and Empire mfg data. Cable support seen at $1.5878 ahead of key $1.5855(Nov12’13 low). Resistance $1.5945/55.
