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London - The pound led a rally against the dollar in early European trading, retracing the loss from Tuesday, as fixing-related demand triggered stop-loss orders.
Sterling advanced as much as 0.9% to $1.2256, after falling by the same amount yesterday, with a YouGov poll for The Times showing that 57% of Scottish voters want to remain inside the UK compared to 43% who seek independence.
The dollar fell against major peers as traders wait to see if the Federal Reserve would signal four rate rises this year, from the three flagged earlier.
“There’s a bit of a push lower in the dollar ahead of the Fed decision, which is putting some pressure on short sterling positions,” said David Forrester, G-10 FX strategist at Credit Agricole’s corporate and investment-banking unit in Hong Kong.
“There is also some news of polls suggesting that Scottish people don’t support leaving the UK”
Fixing-related demand triggered stop losses above $1.2200 for the pound, a trader in Europe said. Offers around $1.2250 by macro accounts capped the move, the trader added.
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