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GBP/USD affected by referendum
The news that Scotland will remain as part of the Union will be welcomed by many. Bank of England governor, Mark Carney, will be relieved that his previously inferred interest rate rising timeline of spring 2015 will now not be affected. One obstacle that could appear in that path, however, is the increased chances of constitutional change to the structure of the UK.
GBP/USD initially added to yesterday’s rally and in Asian trading was as high as $1.6524, however, since then has subsequently fallen away. The $1.66 level above coincides with the 50-day moving average and judging by this morning’s price action, could become a jump too far.