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Forex - Pound falls to fresh 10-month lows vs. dollar

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Investing.com -

Investing.com - The pound fell to fresh 10-month lows against the dollar on Wednesday as concerns over the prospect of a yes vote in Scotland's independence referendum continued to pressure the currency lower.

GBP/USD fell to lows of 1.6053, the weakest since November and was last at 1.6091, 0.08% lower for the day.

Cable was likely to find support at the 1.6025 level and resistance at around 1.6160.

Sterling fell to session lows amid investor jitters ahead of the results of a new poll due to be released later Wednesday at 10.30 pm BST.

The latest opinion poll published on Tuesday showed that support for Scottish pro-independence voters had increased ahead of the September 18 referendum.

Uncertainty over what currency an independent Scotland would use, as well as concerns over how much of the U.K. national debt it would take on have sparked a broad based selloff in sterling.

Meanwhile, Bank of England Governor Mark Carney was to appear before Parliament's Treasury committee later Wednesday to discuss the bank's latest inflation report.

Speaking Tuesday, Carney warned that a currency union is "incompatible with sovereignty." He also appeared to rule out a rate increase this year saying that rates could rise in the spring of next year.

Demand for the dollar continued to be underpinned by heightened expectations for an early hike in U.S. interest rates after recent data indicated that the economic recovery is gaining momentum.

A study by the San Francisco Fed published on Monday indicated that central bank officials see rates rising earlier than markets expect.

Investors have shrugged off last week's disappointing U.S. nonfarm payrolls report as they began to turn their attention to the outcome of next week's Federal Reserve policy meeting.

The Fed is expected to cut its asset purchase program by another $10 billion next Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.

Elsewhere, EUR/GBP hit three month highs of 0.8066 and was last up 0.14% to 0.8044.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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