The pair closed in NY Tuesday at $1.6131 after rate had been driven to intraday highs of $1.6182 as the dollar lost ground across the board following the reaction to weak durable goods data. The rate then drifted off to $1.6152 before downside momentum was given added weight as market reacted to dovish comments from BOE Dep. Governor Cunliffe which took rate to extended pullback lows of $1.6128 before it recovered into the close. FOMC at 1800GMT today acted to subdue trade through Asia, cable though was able to edge to an early high of $1.6145 before it sank back to retest that NY pullback low, touching $1.6129 before it settled around $1.6140 ahead of Europe. UK lending data at 0930GMT provides domestic data interest this morning, with BOE Haldane speaking at 1730GMT(similar comments to Cunliffe expected). However, these events will likely be overshadowed by the FOMC announcement, the market geared for dovish comments (announcement of end of QE3 widely expected, with focus on ‘considerable time’ comment on low rates) so open to surprises. Euro-sterling in Asia was confined to a tight stg0.7890/96 range with dollar plays providing main interest
