The pair closed in NY Tuesday at $1.5151 after rate had extended its recent easing to $1.5142 in a mix of reaction to the release of weaker than forecast UK services PMI (completing a disappointing PMI set and its implications on GDP) and euro-sterling demand, the cross eventually clearing the stg0.7850/55 resistance area to push on to stg0.7875. The cross closed in NY back at stg0.7847. Opening pressure on euro-dollar, which appeared to target barrier interest at $1.1850, saw cable drop to an extended 17-month low of $1.5118 but dip quickly attracted buyers and allowed it to recover to $1.5145, eventually extending this move to $1.5147 before it drifted back to $1.5130/35 ahead of the European open. Euro-sterling reflected cable’s trailing of euro-dollar’s early sharp move lower as it dipped to stg0.7832 before it recovered to settle between stg0.7843/48 ahead of Europe. UK data includes new car registrations at 0900GMT then Lloyds Business Barometer at 0930GMT though main market focus will be on Germany retail sales at 0700GMT, German employment at 0855GMT followed by key EZ flash CPI data at 1000GMT. Cable support seen from $1.5118 through to $1.5100. Resistance $1.5175/85.
