BoE On Deck

The broader USD gyrations were in the driving seat on Wednesday, with the weaker than expected U.S. ADP print allowing cable to extend to fresh session highs, before the ISM services/Fed Vice Chair combo applied pressure for the remainder of NY trade, as the rate closed just off worst levels.

• The cross managed to press as low as $1.3878 overnight, just above Monday's low, before recovering to trade a handful of pips higher at $1.3895 into London hours.
• Our technical analyst notes that the recent move above the 50-day EMA strengthens the current corrective recovery, signalling scope for gains towards $1.3990 next, a Fibonacci retracement. This lies ahead of a key short-term level at $1.4001, the Jun 23 high. A failure ahead of these resistance points would suggest the end of the current correction. First support is at the 20-day EMA.
• There is nothing in the way of notable FX options expiries to be concerned with come today's 10AM NY cut.