The pair closed in NY Tuesday at $1.6271 after rate had seen extended recovery highs of $1.6310 as markets reacted to reported comments from Fed Watcher Hilsenrath suggesting that today’s FOMC Statement would keep the all important ‘considerable time’ guidance in the release. Rate eased of to $1.6265, recovered to $1.6290 before dropping to $1.6241 on an incorrect Scottish poll result (ICM poll was reported showing Yes ahead of NO). When this was corrected cable settled back between $1.6265/75. Rate consolidated these late moves around $1.6270 into early Asian trading before easing off to $1.6250 as Hilsenrath qualified his late Tuesday comments as his own take and not information. The dip attracted fresh demand and allowed rate to settle back between $1.6255/65 before it lifted on to $1.6288 ahead of the European open. Euro-sterling continued its corrective pullback from Tuesday’s highs of stg0.8010, easing to stg0.7951 ahead of Europe. UK employment data at 0830GMT, along with the release of BOE Minutes provides the focus this morning, though Thursday’s Scottish referendum on independence hovers in the background. Cable resistance $1.6288-96 (61.8%-76.4% $1.6310-1.6250) ahead of $1.6310. Support $1.6250, $1.6235-20.
