The Pound Sterling is trading sharply lower today against the other major currencies after gapping downward over the weekend. The notable sell off in Sterling was largely due to fresh opinion polls showing that Scottish voters are increasingly choosing to support the independence of Scotland at the landmark vote set for September 18th, 2014.
A recent poll conducted by YouGov Plc indicated that a “yes” vote for Scottish independence was now in the lead among respondents for the first time so far this year. An affirmative vote for Scottish independence would break up the United Kingdom’s 307 year union.
Most market analysts had not expected such a result, and many feel Scottish independence would have a considerable negative influence on the Pound’s value. The resulting weakness in Sterling sent Cable to the lower level the pair had seen since last November.
Author: John Benjamin
John is a market analyst for Orbex Ltd. and is a forex and equities trader having been involved in trading since late 2009. John makes use of a mix of technical and fundamental analysis and inter-market relationships. For any comments or questions, John can be reached at [email protected]