GBP/EUR rates have dipped during Tuesday mornings trading, despite UK Construction data coming our better than expected. This data would usually help to support GBP strength but Sterling fell back below 1.26 at today’s low, losing over half a cent against the EUR.
This negative move for Sterling has been attributed to a poll in one of the national newspapers, which indicted that the vote Yes campaign over Scottish independence had gained further support, a move which would certainly cause a lot of uncertainty for the UK economy. The knock on effect of this would likely be a negative reaction to GBP in the markets and whilst this remains a plausible outcome, any Sterling spikes may be restricted.
We have further PMI data out for the UK tomorrow but Thursday is still likely to be the key date this week, with both the Bank of England (BoE) & European Central Bank (ECB) interest rate decisions and monetary policy statements likely to dominate the headlines.
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