The pair closed in NY Wednesday at $1.5138, just off intraday lows of $1.5136, as rate reluctantly tracked euro-dollar slippage post FOMC. FOMC announcement was seen less dovish than traders had positioned for and were quick to move back into the dollar (long dollar positions had been pared back ahead of FOMC), with Greece problems again coming to the fore. Euro-sterling was pressed to lows of stg0.7448, from around stg0.7490, on the react, closing the day at stg0.7453. Cable’s late recovery continued into Asia, the rate edging to a session high of $1.5156 before momentum faded. The cross same time retested the NY low before it edged back up to stg0.7457. This recovery in the cross saw cable reverse tack, moving down to an extended pullback low of $1.5130 before it met decent demand. Rate bounced ahead of Europe, trading above $1.5150 into the new session. Euro-sterling also reflected sterling strength as it pressed to extended lows of stg0.74425. UK Nationwide house data at 0700GMT begins the domestic data interest, with CBI reported sales at 1100GMT. Continued fall out from the FOMC, along with the focus back on Greece to drive trade today. Cable support $1.5130/20, $1.5100. Resistance $1.5156, $1.5168(21-dma).
