The pair closed in NY Monday at $1.5171 after rate had extended its recovery off early European lows of $1.5099 to NY afternoon highs of $1.5187 (holding shy of earlier Asian highs of $1.5195) before rate drifted off into the close. This corrective pullback extended in early Asia as rate eased to $1.5158. Heavy selling in dollar-yen, as this rate broke below support at Y118.00, prompted general dollar sales, which in turn allowed cable to rally up to $1.5192. Rate reversed into the Asian afternoon, drifted off to retest earlier lows ahead of Europe before extending move to $1.5154. Cable support seen into $1.5145/35 ahead of $1.5120 with stronger demand noted around $1.5100. Resistance remains in place between $1.5190/1.5205. Moves through Asia were seen dollar driven as euro-sterling was held within a tight stg0.7799/0.78065 range. UK CPI due at 0930GMT with most forecasting headline number to drop under 1.0% to 0.7% y/y (due to price fall in oil and commodities) which will prompt a letter from the BOE Governor to the Chancellor as inflation moves outside of its 1.0% band around the 2.0% target.
