Cable had recovered off a low of $1.3308 to...>

CABLE: Cable had recovered off a low of $1.3308 to $1.3390 pre FOMC, dropped to

$1.3319 on initial react, as FOMC hiked rates by the much expected 25bps as well

as signalling 2 more hikes to come this year. WSJ report that US prepare tariffs

on China imports came during Fed Chair Powell news conference which acted to

counter what had been a hawkish FOMC and saw the USD pare gains. Cable recovered

to $1.3384 then settled around $1.3370 into the close. Trade through the main

part of Asian dealing was contained within a range of $1.3370-85 before it

picked up fresh demand ahead of Europe to take it on to $1.3399 into Europe.

Rate was pressed back to $1.3389 but current tone sees sterling buoyancy.

Resistance $1.3400 ahead of $1.3419/25(Hourly high Jun12/Jun12 high). Initial

support seen at the Asian base of $1.3370. Domestic focus on UK Retail Sales at

0830GMT but ECB overshadows. No change widely expected by the ECB but focus on

any hint that an end to QE had been discussed, though no announcement expected

until the Jul meet.