The pair closed in NY Wednesday at $1.5140 after rate had seen react lows of $1.5076 following the release of BOE Minutes which showed the two rate hike hawks had moved back into the neutral camp. This overshadowed the release of better than forecast UK jobs/wage data released at the same time. Cable struggled to track euro-dollar’s recovery, leaving euro-sterling to extend its recent recovery to stg0.7712, though did manage to touch a high in NY of $1.5148 as euro-dollar drove up to $1.1680 on press reports of ‘leaked’ ECB QE action. Cable dropped back to $1.5084 into the European close, tracking euro-dollar’s sharp pullback as traders faded that earlier rally, though was provided some buoyancy by euro-sterling easing back toward stg0.7650. Cable recovery into the NY close continued into Asia with rate pushing up to $1.5159 but rate struggled to hold gains and eased down to $1.5131, with early Europe extending the move to $1.5126 as the cross settled around stg0.7660. UK borrowing data provides domestic interest at 0930GMT, ahead of CBI trends at 1100GMT, though these two events overshadowed by the ECB press conference as market awaits announcement on EZ sovereign bond buying QE.
