Home > Resource Hub > Daily Market News > 1 DAY TO GO…

1 DAY TO GO…

1 DAY TO GO…

With one day to go until the Scotland Referendum, the Pound is still gripped by uncertainty and is extremely volatile. The latest 3 polls are showing a slight lead for the No campaign although the worrying aspect for supporters of the union and also a market which hates uncertainty is that there is still a huge amount of undecided voters. The truth is no one really knows…

 

We did see a bit of respite for Sterling yesterday as it gained ground on the US Dollar due to dollar weakness in the market. Since the YouGov poll of September 8th which caused shockwaves in the market, Sterling has dropped 0.9% against the Dollar. What is interesting is that the Yen has dropped 2.0% in this time whilst the Euro has remained pretty steady.

 

We should see a bit of focus switch back to market fundamentals today as we get minutes from both the Bank of England this morning and the Federal Reserve later on in the day. For the US, much attention will be paid to the language used and whether we will see a switch in the forward guidance towards its goals of full employment and inflation at 2.0%. As the US economy appears to be moving in the right direction, will the Fed need to raise interest rates earlier than previously predicted?

 

Although the Bank of England minutes may still be overshadowed by any polls that come out, it will be interesting to see if anyone else is in favour of hiking interest rates. Last month’s 7-2 vote showed that the mood had started to change and will we see this further enhanced?

 

It’s a very heavy data today with obviously the BoE and Fed minutes, statements and speeches taking centre stage. We also have average earnings, claimant count and unemployment rate out of the UK, CPI from the Eurozone and mortgage applications and CPI from the US.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.