Pound takes a beating as Scottish Referendum gains traction
City Index September 8, 2014 3:00 PM
<p>The pound has taken a battering on the open, down 130 points to below 1.6200. All this was brought on by a new poll showing Scottish Independence […]</p>
The pound has taken a battering on the open, down 130 points to below 1.6200. All this was brought on by a new poll showing Scottish Independence gaining the lead for the first time. With 10 days to go this can be a volatile time for the pound as it looks set to decline further with the ‘yes’ vote. Or we could get the gap covered by any news of a ‘no’ vote.
Some important data is coming out this week, with BoE Governor Mark Carney speaking and the NISER GDP estimate out tomorrow. This will be followed by the inflation report on Wednesday, some big swings ahead possibly for the pound.
The euro is still continuing its fall since the rate cut by the ECB. It started the day lower via a risk off trade but kept afloat as EUR/GBP climbed 62 points to 0.8000 since the fall in cable.
Today’s German trade balance data was released at a record surplus pointing to a strong Q3. This has helped keep the euro steady for now.
This week the eurozone CPIs and ECB monthly bulletin are released on Thursday and will be the most important data for the week.
USD/JPY has moved back above the 105 level and seems to want to stay up here for now, but with the usual threat from geopolitical tensions still in the air. The latest from Ukraine is that the ceasefire has been breached in Donetsk.
Supports 1.2910 1.2875 1.2835 | Resistance 1.2985 1.3050 1.3075
Supports 105.03 104.88 104.78 | Resistance 105.28 105.37 105.52
Supports 1.6137 1.6113 1.6100 | Resistance 1.6237 1.6260 1.6298
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