The pair closed in NY Tuesday at $1.5749 after rate had performed an impressive bounce back from its initial UK CPI react low of $1.5610 to $1.5785. Rate corrected back to $1.5715 in NY post London fix. Volatile swings then ensued into the close as rate recovered to $1.5759, dropped back to $1.5720 before edging back into the close. Liquidity was described as poor after the UK data which in turn added to the volatile swings. Cable marked an early high in Asia of $1.5755 before rate eased off to retest the NY low of $1.5715, settling around $1.5720 into Europe. Domestic interest this morning provided by the release of BOE Minutes, the recent 7-2 voting split expected to remain though strength of dissent to be gauged. UK employment data released at the same time (0930GMT) with focus on earnings component. Russia fallout remains a key factor in trade. However, focus will be on US inflation data at 1330GMT, with the FOMC announcement later at 1900GMT key. The ‘considerable time’ part of the statement will be the main focus to see if this has been removed, possibly to one more of patience. Cable resistance seen from $1.5770 through to $1.5785. Support $1.5715/00 ahead of $1.5685/80.
