Banks advise people to buy Pound, AUD hit hard
As the day ends in y, the Scottish Referendum again makes all the headlines and it is the unknown that is driving the Pound down further.
Scotland and Quebec
As the 3 stooges of Cameron, Milliband and Clegg head north of the border, things are certainly stepping up a gear. Certain banks are advising their clients to buy the Pound now as, if the Better Together vote wins, then they would expect Sterling to bounce back from its losses. Many are making comparisons between Scotland and Quebec of 1995, where the no vote won and the currency pairs certainly seem to be following the same pattern so far.
Mark Carney tried to steal a bit of the limelight back yesterday as he told The Trade Unions Congress yesterday that the first rate hike is planned for Spring 2015. This caused a decent hike in Sterling which was quickly eroded. Carney is speaking again today in front of the Treasury Committee which could provide some interesting news but, as Carney is never particularly candid, may mean we have already heard it all before.
AUD down, USD up
The Australian Dollar was one of the big losers yesterday, as consumer confidence unexpectedly worsened. There was much doom and gloom around regarding the disappointing results and the feeling that any recovery it had made over the last 3 months had vanished overnight.
The US Dollar is still going strong and there is much positivity ahead of tomorrow’s labour reports. There is also a sense of inevitability that rates will rise by mid-2015 which the markets are more than comfortable with.
Today’s market data is headlined by UK inflation reports, US mortgage applications and the interest rate decision from New Zealand