Today’s strong UK services PMI figures will have buoyed sentiment, however this has been outweighed by the hangover from yesterday’s YouGov poll for Scottish Independence. As the ‘No’ team’s lead has been whittled down from 22% to 6% in little over a month, currency traders have begun to more seriously consider the consequences. Arguably the most worrying thing has been the wholly unconvincing ‘We have a plan B’ statements coming out of Westminster, coupled with an unwillingness to elaborate.
The last 24 hours of trading have seen GBP/USD drop straight from $1.66 down through $1.65, as the last week’s rally has swiftly been wiped out. Further selling pressure could well be on the cards ahead of tomorrow’s Bank of England interest rate decision.