The pair closed in NY Wednesday at $1.6273 after rate had been pulled back from an intraday high of $1.6358 to a session low of $1.6250, as the FOMC Statement (Fed funds guidance) prompted broad based dollar demand. The move lower however trailed euro-dollar’s deeper pullback and in turn allowed euro-sterling to extend its corrective pullback to stg0.7908 (NY low and close). Cable broke under the NY base in opening Asian dealing, marking session lows at $1.6247 before recovering to $1.6276, the move aided by euro-sterling extending lows to stg0.78905. As the cross recovered back above stg0.7900 it saw cable drift off to $1.6260 ahead of the European open. The cross opens Europe around stg0.7909, just off Asian (recovery) highs of stg0.7912. The much highlighted Scottish referendum takes place today with released polls still showing the NO vote ahead though remains a tight race. Betfair exchange betting has the No vote at 2/9, Yes vote 9/2. UK retail sales at 0830GMT. Cable resistance $1.6280/85ahead of $1.6300/05, a break to open a move toward $1.6315/20 ahead of $1.6330/35. Support now seen at $1.6247/37 (Asia low/61.8% $1.6162-1.6358), a break to open a deeper move toward $1.6210/00.
