The pair closed in NY Thursday at $1.7040, euro-sterling at stg0.7985. Euro-dollar’s break of $1.3600 provided momentum in early European trade to take the rate through $1.7000 and on to $1.7028. The underlying tone was buoyant into NY and despite upbeat US data sterling remained strong against the dollar as uncertainty continues over when the US will raise rates. With the dollar under constant pressure the $1.7050 barrier was targeted and triggered as it extended to multi-year highs of $1.7062. A rise in US yields supported the dollar and the rate pared light gains into the close. After lifting to post UK Retail Sales highs of stg0.8025, euro-sterling extended the corrective pullbackto stg0.7985 and sat heavy. After slipping to early Asian lows of $1.7034 cable found support in the dip and with the dollar under broad selling pressure quickly recovered to $1.7045. Gains were capped ahead of $1.7050 as traders look to near-term resistance from yesterday’s NY high at $1.7063, a break opens a move towards very strong offers placed at $1.7090. Euro-sterling saw thin trading conditions tied to a narrow stg0.7984-92 range, with offers reported to cap the topside on approach to stg0.8000.
