The pair closed in Tuesday’s North American thinned session at $1.5919 after rate had recovered off European lows of $1.5835 to $1.5945 in a move seen driven by position adjustments in thin conditions. However, cable consolidated this recovery in Asia, trade during the session contained within a range of $1.5905-25. Rate initially extended the late Tuesday pullback to that mentioned low before rate recovered ahead of Europe to $1.5925, extending on to $1.5932 in early European trade. Euro-sterling traded in Asia between stg0.7830/0.78375, with rate edging on to stg0.7843 in early Europe as euro-dollar was seen leading the early recovery. Focus today in sterling is on UK employment data at 0930GMT, followed by the BOE Inflation Report at 1030GMT. Most expect the growth outlook to be maintained, though inflation and employment forecasts likely to be lowered. Recent trader commentary have suggested that the Report won’t be as dovish as many had anticipated, with positions adjusted accordingly in the last few days. Cable resistance seen at $1.5930-36(61.8%-76.4% $1.5945-05) a break to expose the $1.5945/55 area of stronger offers($1.5954 76.4% $1.6004-1.5791). Support $1.5905/890.
