The pair closed in NY at $1.5668 with the pound having enjoyed a positive session, aided by the release earlier in the day of strong UK retail sales data. Rate had recovered off an early day low of $1.5551 to $1.5676 in NY, with a pullback to $1.5643 quickly attracting demand that provided the lift into the close. Rate marked an early high in Asia of $1.5673 before it drifted off to $1.5651 where rate met decent support. Recovery to $1.5666 saw momentum fade with rate resting back on its overnight low into Europe. Euro-sterling, which had seen an extended slip to stg0.7837 in NY, consolidated between stg0.7839-0.78495. UK public sector borrowing due at 0930GMT and provides the early domestic interest, with CBI reported sales due at 1100GMT. Cable offers remain at $1.5676, stronger into $1.5690/1.5700 ($1.5692 61.8% $1.5786-1.5539/$1.5699 initial FOMC react). A break to open a move toward $1.5725/30 ahead of $1.5750/55. Support seen at $1.5650, $1.5625/20, then more into $1.5600. Euro-sterling demand seen at stg0.7837-32 (Dec18-Dec3 lows), resistance stg0.7850, stg0.7900.
