The pair closed in NY Tuesday at $1.5155 after it had extended its recovery off post UK CPI inspired lows of $1.5045 to $1.5169 as traders pared dollar longs ahead of Fed Bernanke’s Testimony in his semi annual report to the house later today. Cable’s corrective pullback extended into Asian trade before it settled between $1.5110/20 ahead of the European open. Traders have BOE MPC Minutes at 0830GMT to focus on before Bernanke, with most watching to see how new Governor Carney voted. If he voted for unchanged rates/QE will be seen as sterling positive, and could outweigh any other member moving across to the QE extension camp. If he voted for an increase in QE will be sterling negative. Some suggest there will be comment on policy transparency, possibly with clues to forward guidance at the next meeting in August. Cable demand seen placed between $1.5110/00, a break to open a deeper move toward $1.5060/45. Resistance $1.5170/80 ($1.5176 76.4% $1.5222-1.5028) ahead of $1.5200 and $1.5220/25. Euro-sterling, which managed to take out barrier interest at stg0.8700 Tuesday, consolidated between stg0.86865/0.86955 through Asia. UK trade data also due for release at 0830GMT, but Minutes to overshadow.
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