The pair closed in NY Monday at $1.6163 as rate drifted back from intraday highs of $1.6179, seen in the US afternoon, post London fix. This corrective pullback continued into Asia as rate was pressed down to $1.6153 before meeting decent demand. Release of stronger than forecast Chinese GDP and IP data provided a boost to ‘risk on’ and pushed cable to an extended high of $1.6186 ($1.6187 1.618% swing $1.6068-1.5875). Move was seen in tandem with euro-dollar, as the dollar came under general pressure (led by strong sales of dollar-yen) which left euro-sterling to consolidate between stg0.7917-25, the rate having seen extended pullback lows of stg0.7904 Monday. Cable was seen holding firm levels ahead of the European open, as dollar-yen continued to press lower on Nikkei losses. Cable offers now seen into $1.6200, a break here to open a move toward $1.6218(T.line off $1.6525) and the Oct9 high at $1.6227. Support remains at $1.6150. UK public sector borrowing at 0830GMT provides domestic interest in an otherwise data light day. US existing home sales provides afternoon interest. Euro-sterling support into stg0.7900, resistance stg0.7925/30.
