The euro has started the week on the wrong foot while the dollar’s strength continues as Wednesday’s Federal Reserve meeting is in focus.
Sterling down as Scotland’s decides
The pound is trading at $1.6238, down 0.15% as the clock ticks towards the big decision on Thursday 18 September. The ‘No’ vote remains ahead in the polls but the margin is too close to call and the bias reminds on the downside. As Alastair McCaig stated, the pound has moved out of oversold territory but we have yet to see conviction buying. Today is a quiet day in terms of UK economic data and the focus will remain on Scotland.
The pound is yet to close the gap up to $1.6326 and support is coming in at $1.6191. If the referendum keeps moving in the direction of the ‘No’ vote it could target $1.6326, but a late resurgence in the ‘Yes’ campaign could push sterling to $1.6059.