Cable has run into resistance just shy of touted offers at 2.0020, after tripping some buy stops above 2.0000. Those stops helped the rate push its recovery envelope from an Asian session one-week low of 1.9955. Corporate sell interest was sated into 2.0000.
Sterling's Asian session fall to 1.9955 was reportedly fuelled by USD buying related to AstraZeneca's $15.6bn cash purchase of MedImmune. There is speculation that an exotic option barrier resides at 1.9950. Sell stops are tipped below 1.9950, with more touted sub-1.9940 (Apr 16 high). A 1.9985 option strike rolls off at today's 10am Eastern NY cut (14:00GMT).
In testimony to the TSC, BoE Governor Mervyn King reiterated that he is determined to bring UK CPI back to its 2.0% target level (Reuters).
April's CBI industrial trends survey will be disclosed at 13:15GMT. Headline balance forecast: +5, from +8 in March. April's US consumer confidence gauge ensues at 14:00GMT. Forecast: 105.0. US March existing home sales are also due at 14:00GMT. Forecast: 6.40mn.
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