The pair closed in NY Wednesday at $1.5712 as rate was pushed up off earlier lows of $1.5648 on the back of UST yield led dollar softening. Rate again met decent resistance at $1.5720 which capped this session (matching Tuesday’s high) before it dipped back to $1.5683 then recovered into the close. This recovery extended in early Asia to retest the NY high at $1.5720, and with strong dollar-yen sales at the Tokyo open allowed for an eventual break. Triggered stops drove the rate to a high of $1.5757. Rate held most of these gains for a while before a rebound in dollar-yen prompted general dollar demand and cable dropped back to $1.5712. A recovery to $1.5734 proved short lived and rate turned lower again, marking an overnight low of $1.5705 ahead of the European open. Euro-sterling, which had seen lows Wednesday of stg0.7885, edged back to stg0.78225 in NY. An initial drop to stg0.79105 in early Asia quickly reversed and saw rate extend recent recovery highs to stg0.793345 before it drifted off to settle around stg0.7920. ECB TLTRO results due at 1015-20GMT the morning interest ahead of US Retail Sales and the effects this will have on UST yields.
