The pair started the week at $1.2943 in Asia near the lower range of $1.2944 to $1.2988 in NY. The spot slid briefly to an early session low of $1.2931 before quick a pullback to session high of $1.2961, but drifts back lower to $1.2934 in early noon Asia. The cable gapped down to open 130 bps lower as Scottish vote polls showed a 51% “yes” vote, pressuring the euro lower in early market action but short covering supported a rebound before more selling interest in euro-crosses forced the euro lower. Euro-sterling gapped open higher at Gbp0.7997 on lower cable, a brief spike to high of Gbp0.8015 saw good supply eased the rate to fresh low of Gbp0.7979. The euro-yen turned heavy slipping to Y135.89 in early afternoon trade, down from session high of Y136.31 and pressuring the euro lower ahead of key supports at $1.2920-22 (Sep 4-5). Strong demand/barrier noted at $1.2900 while medium offers reported at $1.3000. Themarket will focus on Dragi’s keynote address on Thursday and final inflation numbers in eurozone. The euro last at $1.2938.
