Early Europe Moves into the Late Asia Dip

Recovery off Tuesday's NY pullback low of $1.3114 managed to extend in Asia to $1.3158, though held off a challenge on Tuesday's high of $1.3171. Rate drifted off through the balance of the Asian session, touching a low of $1.3126 into Europe. Minor support noted between $1.3120/15 ahead of $1.3100, $1.3080/75, stronger into $1.3050. Resistance remains at $1.3158 ahead of $1.3171/80. A light data calendar in the UK Wednesday. Domestic focus on BOE Haldane speaking in Edinburgh at 1700BST. US Durable Goods noted at 1330BST. Talk in Asia that hedge funds and leveraged accounts have reduced their long sterling positions, though IMM continue to hold on to long positions. Month-end models suggest cable could be a beneficiary of predicted USD sales. Month-end this month falls on the UK bank holiday.