The pair closed in NY at $1.6165, just off late session highs of $1.6181 after rate had been driven higher on the back of general dollar weakness prompted by FOMC Minutes which disappointed a market expecting some hint at hawkishness, if anything more dovish than the last meeting, with concern noted over the recent appreciation of the dollar. The move up trailed euro-dollar’s stronger recovery which in turn allowed euro-sterling to extend its recovery to stg0.7900 (though ran into decent supply at this level) before the cross backed off to stg0.7874. Cable continued to drift lower into early Asia, posting an early low at $1.6156, recovered to $1.62173 before dropping back to post session lows at $1.6151. Rate recovered through the balance of the day to $1.6198,trading around $1.6190 ahead of Europe. Euro-sterling lifted back to stg0.7887 in early Asia only to turn lower, finding support at stg0.7871 before settling back around stg0.7875 ahead of Europe. BOE MPC rate decision at 1100GMT, though widely expected to keep rates/QE unchanged. US weekly jobless claims and further knock on effects of Wednesday’s FOMC Minutes on UST yields to influence price action, via dollar strength, in view for the day.
