UK Unemployment Drops Again But Scottish Vote Still Dominating Exchange Rates (Colm Gilhooly)

GBP EUR Starts the Week with 1.1800 Test

The Bank of England Minutes showed no surprises, and UK unemployment has dropped again however everything seems to be on hold until Scotland decides whether to remain part of the UK or not.  The expectation is that Scotland will vote No to independence however the polls are so finely balanced at the minute that markets are incredibly nervous.

In the event of a No vote I think we will see sterling experience a relief rally as the uncertainty is lifted (and most UK data of late has been reasonably good).  However a Yes vote and all bets are off- some analysts are evening forecasting the pound may drop as much as 10% in a panic sell off as investors wait to see what the implications are.

Personally I anticipate a No vote so if you are holding Euro, or any other currency for that matter, and are looking to buy sterling then I would cash in before the exit polls start showing too strongly tomorrow evening.  However it is a big gamble either way so if you would prepare not to wait then feel free to contact me Colm at [email protected] and I would be happy to take you through some options and explain how our services work to save you money.