The pair saw a sharp bounce off European lows of $1.5632 on Thursday after the release of strong UK Retail Sales data, which later extended to $1.5690. The underlying tone remained buoyant into NY and with euro-sterling’s move through stg0.8000 to stg0.7973, cable squeezed to fresh highs of $1.5738 before profit take sales eased into the close. Cable opened the Asian session heavy and encountered early selling pressure with a move to $1.5679, before dip demand emerged to cushion falls. Comments from Japan’s Finance Minister Aso that said the pace of yen’s recent fall has been too fast, triggered a wave of dollar unwinds as the pair recovered to $1.5700. Light profit take sales eased before a further push lower in dollar-yen to Y117.35 provided added momentum to take the rate to recovery highs of $1.5714. Momentum stalled and as the dollar started to pare session losses, cable slipped back to settle around $1.5685/90. Euro-sterling opened at stg0.7989 and after extending the slow grind to stg0.8001, it later eased to remain in narrow range trade.
