LONDON: Sterling rose against a broadly weaker euro after international lenders failed to agree a deal on funding for Greece, but gains were limited ahead of the release of Bank of England minutes. Traders were wary of any hint in the minutes, due at 0930 GMT, that more quantitative easing - which involves flooding the market with sterling - may still be on the table. The market has largely priced out the chances of more easing this year, but any confirmation that the bank is set to hold off for a while would probably be positive for the pound. Most analysts expect the minutes will show an 8-1 vote to leave the QE total unchanged. "It would be a surprise if the minutes mentioned easing more prominently. The market is not expecting much and if it gets more then that would have to be priced in," said John Hardy, currency strategist at Saxo. The euro was down 0.3 percent at 80.18 pence, having earlier hit a one-week low of 80.07 pence after euro zone officials and the International Monetary Fund ended 12 hours of talks without a deal on Greece's next batch of aid. More falls could see the euro drop towards chart support around 79.85 pence, marking a trendline drawn from the euro's 2012 low of 77.56 pence hit in July, and then the 100-day moving average at 79.64 pence. Barring surprises in the minutes, sterling is likely to benefit further from safe haven flows out of the euro, Hardy said. Against the dollar, the pound was down 0.15 percent at $1.5901 as the safe-haven U.S. currency gained broadly following the lack of any deal for Greece. However, it stayed not far from a peak of $1.5936 reached on Tuesday, its strongest in more than a week, and remained comfortably above last week's two-month low of $1.5828. Public sector borrowing figures are also due at the same time as the BoE minutes. They are not expected to have a major impact on sterling, although analysts said a particularly weak number could knock the currency.

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