The pair closed in NY Thursday at $1.6610, euro-sterling at stg0.8272. The rate earlier spiked to $1.6642 on release of much stronger than expected UK Retail Sales data which came in at 1.7% vs median estimates of 0.5%. Gains extended to $1.6647 before the rate stalled after mixed US data from GDP, Jobless Claims and Pending Home Sales. LHS interest in euro-dollar for the 4pm fix added further weight, before running into strong support ahead of $1.6600 to settle in a narrow range. Euro-sterling pressed sharply through stg0.8300 on the move to lows of stg0.8263 and remained heavy into the close. Broad-based dollar supply in early Asian dealings lifted cable to $1.6618, gains extended to $1.6623, before momentum stalled. Traders reported of light volumes as the pair consolidated gains throughout the Asian afternoon tied to a narrow 10 pip range. Euro-sterling slipped to stg0.8268 on the move before dip demand emerged ahead of stg0.8260 to cushion falls. Focus turns to release of UK Q4 GDP final figuresand Current Account data at 0930GMT for direction.
