Scottish Independence causing the pound to collapse
City Index September 3, 2014 2:34 PM
<p>Yesterday saw the USD make gains against most pairs as data shows the economy is on track for a possible early rate rise. The US dollar […]</p>
Yesterday saw the USD make gains against most pairs as data shows the economy is on track for a possible early rate rise. The US dollar made good gains against the yen following news of the cabinet reshuffle by Abe in a bid to boost the economy. The dollar is currently trading just below the 105.00 level after the yen clawed back some losses.
The Aussie dollar broke the USD bid tone overnight after a fall in GDP but with a slight bit of hope as it came in just over consensus. It is currently trading just above 0.93 level, with weaker retail sales expected to be released overnight.
The pound wasn’t so proud yesterday, with a mighty fall of over 100 points on growing fears for the UK’s fate as a poll showed record support for the Scottish independence. Even good PMI construction data yesterday couldn’t stop the momentum. Today’s data is the services PMI, expected to drop to 58.6 from 59.1, so it doesn’t look good for the pound unless we get a better-than-expected release. The pound is currently trading below the 1.65 level.
Supports 0.9250 0.9225 0.9183 | Resistance 0.9317 0.9360 0.9385
Supports 104.50-104.00-103.80 | Resistance 104.95-105.10-105.50
Supports 1.6416 1.6366 1.6267 | Resistance 1.6565 1.6664 1.6714