The pair closed in NY Wednesday at $1.6580, euro-stg at stg0.8313. The rate found solid support ahead of $1.6500 in early Europe after BOE Weale comments, and as momentum built during the session, lifted to $1.6565. Sharp dollar slippage in late NY linked to a 5Y auction extended gains to $1.6597, before profit take sales eased into the close. The move coincided with US 10Y yields break of 2.7% and a decline in stocks. Euro-sterling under continued pressure throughout Euro/US briefly took out the 100dma on the move to session lows of stg0.8310, before support in the dip cushioned falls. Cable remained in consolidation mode and was tied to a narrow $1.6569-86 overnightrange. With moves dictated by euro-dollar, downside pressure was seen around the open taking the rate to $1.6569. Dip buying emerged and after a move down in dollar-yen which led to broad dollar sales, the rate extended to $1.6586. With euro-dollar moves capped ahead of $1.3800, cable drifted in tandem to settle around $1.6575. Euro-stg once again found strong support ahead of stg0.8310, the cross later recovered to stg0.8321. Focus turns to release of UK Retail Sales data at 0930GMT, as cable eyes a move back above $1.6600.
