The pound is substantially stronger against the dollar Wednesday morning after bullish minutes from the Bank of England, while the euro is flat after relinquishing earlier gains as stock markets retreat. The pound hit a high of $1.6592 overnight, its highest level since mid-September, according to EBS via CQG, after the minutes from the Bank of England's last meeting suggested it may not extend its GBP175 billion asset-purchase program next month, as had been widely expected. "It wasn't really anything out of ordinary in the Bank of England minutes, but it was enough that it wasn't dovish and they're holding the line" on further asset purchases, said Steve Butler, director of foreign at Scotia Capital in Toronto. The pound had been oversold in recent weeks as investors bet on an extension of the program, so a sharp rebound is not surprising, he added. The euro reached a high at $1.4966 in overnight trading Wednesday, but then receded along with stock markets. "It was a rough day for (stocks) yesterday (Tuesday), and it looks like right now they're going to be off to a slow start, so it's not surprising to see New York come in this morning and try to buy some dollars," Butler said. U.S. stock markets are called to open slightly lower. In morning trading Wednesday, the euro was at $1.4925 from $1.4929 and at Y135.80 from Y135.40. The dollar was at Y91.00 from Y90.71, according to EBS. The dollar was at CHF1.0128 from CHF1.0127. The pound was at $1.6568 from $1.6361. The euro slipped as low as CHF1.5097, close to the levels that could trigger intervention from the Swiss National Bank, which has moved twice earlier this year to halt the franc's advance. There are no significant economic releases scheduled for Wednesday in North America, suggesting overall risk appetite will continue to be the key driver for currencies.

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