Richard Perry
Independent Analyst
Trading in Cable has been relatively orderly considering what might have been. It seems as though the Scottish independence vote has passed fairly comfortably with a “No” victory as a silent majority have come out in support of the Union. Cable has pushed higher in the past 24 hours, but the markets had already been preparing for the result, adding 125 pips yesterday in fairly steady fashion. With many European traders starting early the volumes have been much higher than normal for those hours, but as the morning has developed, the trades have taken on a less orderly pattern and volatility remains high. Much of the sell-off from $1.6600, from which Cable started to drop as the opinion polls tightened a couple of weeks ago, has now unwound. Today can be expected to remain rather volatile. Traders must now re-price sterling in a status quo but also factor in the strength of the dollar over the past couple of weeks. It may take Cable a day or two to settle back into normal trading conditions, at which point we can take a step back and assess the technical aspect. For now, the overnight peak has been at $1.6525 and there are support levels that have been left on the way up at $1.6400 and $1.6350.
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