The Pound continues to claw out minor gains because of a lack of alternatives. Overt weakness in theSwiss, Euro and Canadian combined with consolidation action in the Dollar has given the Pound the edge tocontinue to claw out more minor gains. As we suggested into the Scottish vote, the Pound gets a temporary liftfrom a no vote result but to see the Pound mount a sustained rally from current levels will eventually requireevidence of stronger UK data and renewed hints of rising UK rates. Support in the December Pound moves up to1.6356 and there might be little resistance until 1.6436.
