The pair closed in NY Friday at $1.6268 as rate held toward its recovery highs of the week at $1.6277, off Wednesday(Sep10) lows of $1.6052, as polls continued to show the Scottish independence No vote ahead, though result looking to be a tight affair considering weekend polls. Sterling picked up demand into early Asia which allowed rate to touch an extended high of $1.6279 (just shy of $1.6283 which some see would close a technical gap) before general dollar demand emerged to counter the early move and squeeze rate back to $1.6232. Recovery to $1.6258 proved short lived with rate coming under another round of downside pressure which has extended the lows to $1.6229 ahead of the European open. The Scottish referendum Thursday (results due Friday morning) takes centre stage this week. A data light domestic calendar today with UK CPI due Tuesday ahead of Wednesday’s release of employment and the BOE Minutes (interest here after recent comments from BOE Carney that rates could risebefore wages, a continuation of the rate hike vote split of 7-2, McCafferty and Weale in the hike camp. Cable resistance seen at $1.6275/85 ahead of $1.6330/35. Support $1.6230, $1.6210/00.
