Pound hits 2-1/2 week highs while euro touches 14-month trough

Pound hits 2-1/2 week highs while euro touches 14-month trough

19 September 2014, 13:00
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EUR/USD hit 1.2885 during European morning trade, the session low. 

The pair subsequently strengthened at 1.2884, sliding 0.30%.

The pair was likely to find support at 1.2833, Thursday's low and a 14-month low and resistance at 1.2981, the high of September 17.

The dollar remained supported after the Fed on Wednesday cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on Wednesday, keeping the program on track to finish next month.

Markets interpreted the Fed's statement as hawkish, despite policymakers maintaining language suggesting that rate hikes would not happen for a "considerable time."

GBP/USD hit 1.6525 during late Asian trade, the pair's highest since September 2; the pair subsequently consolidated at 1.6449, gaining 0.32%.

Cable was likely to find support at 1.6327, the low of September 4 and 10-month low and resistance at 1.6615, the high of September 2.

The pound strengthened as Scotland overwhelmingly rejected independence after a record turnout of voters delivered a clear victory for the No campaign on Thursday.

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