The pair recovered off European lows of $1.5590 to $1.5701 on extended reaction to the BOE minutes that were more hawkish than expected after it was highlighted spare capacity might be exhausted soon. Narrow range trade continued in early NY before the pair spiked to $1.5720 on release of the Fed minutes, later easing to close $1.5675. Euro-sterling recovered off post BOE minutes lows of stg0.7989 to close at stg0.8001. Cable was given an early lift to $1.5687 in Asia, however with gains to the topside seen limited a fresh wave of dollar demand emerged to counter the move. sideways trade continued with the pair tied to a narrow $1.5665-82 range and as dollar-yen continued its march to fresh 7-year highs of Y118.71, cable settled at $1.5675. Demand is seen placed on approach to $1.5650, more bids behind through $1.5620/00, with stops set on a break of $1.5590. Euro-sterling made a brief show back under stg0.8000 overnight, before the dip attracted fresh demand interest with a move to stg0.8005. Focus turns to the release of UK Retail Sales data at 0930GMT for direction.
