Pound takes a beating as Scottish Referendum gains traction

<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

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.