The pair closed in NY Wednesday at $1.5969 after rate had performed an impressive recovery off post UK svcs/comp PMI data lows of $1.5869 to $1.6000. Rate pulled back to $1.5942 before recovering to $1.5990 post London fix then drifted off into the close. Sterling’s recovery was seen on heavy euro-sterling sales as the cross was sold back from intraday highs of stg0.7864 to stg0.7809, closing the day at stg0.7818. This late recovery extended through Asia, the rate pushed up to stg0.78345 ahead of Europe. The move up in the cross tracked euro-dollar, though euro-dollar also allowed cable to recover off Asian lows of $1.5955 to $1.6004 before it settled around $1.5985 ahead of Europe. Dollar-yen provided the main drive in Asia, the rate having spiked to Y115.52 before dropping back to Y114.06, the dollar taking its general direction from this. ECB and BOE rate decision day, though no change in rates seen for either. Focus will be on ECB Draghi press conference at 1330GMT. UK IP/Mfg data at 0930GMT to provide the morning’s domestic data interest. Despite cable’srecovery traders still prefer to fade rallies. Cable resistance $1.6004, $1.6023-27 and $1.6038. Support $1.5955/50.
