The British
Pound has started the week to the downside with a bearish gap versus the Dollar
and versus the Yen. This has been caused by the news that the recent polls have
shown that during next week’s referendum in Scotland, there is a high likelihood
of independence being approved by its citizens.
This has
caused many investors to believe that for now the Bank of England will refrain
from raising its interest rates and that is why we are seeing weakness on the
Pound. The fact that the Bank of England has said that is has no contingency
plan in place in case of a Scottish independence is really scaring investors,
because nobody knows for sure how that British economy will react to the news.
For now,
the Scottish leaders have not said if they will keep the Pound as their
currency or if they will create their own currency. This uncertainty is prone
to bring more volatility to the markets, especially on the British Pound.
Very interesting article, thank you!
ReplyDeleteWith only 10 days until referendum about Scottish independence, the "Yes" took the lead in the latest poll conducted by You Gov, a company of British research that often works for the Sunday Times.
ReplyDeleteVery important article that we should follow the developments.
ReplyDeleteGood article, thank you.
ReplyDeletelet's see where the pound will go after the referendum
ReplyDeleteAll eyes on Scottish independence referendum.
ReplyDeleteAwesome. Thanks for the info!
ReplyDeleteBe aware ''£17bn 'drained from UK economy' as vote prompts 'Great Depression' fears''.
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