Monday, September 8, 2014

Sterling plunges after poll shows 51% wants to exit the UK

•Sterling plunge in the battle for Scotland’s future!
•GBP/USD gapped approximately 0.90% down after a poll showed that 51% of those who have made up their mind planned to vote Yes, while 49% intended to vote No
•The pound may decline further as the voting date comes closer
•US Employment data disappointed the market
•Non-farm payrolls increased 142k missing expectations of a 230k increase, ending a six-month above 200k prints
• On the positive side, the unemployment rate declined to a six-year low and the average hourly earning accelerated
•The dollar could regain its momentum given these positive signs
•Today:
•Germany’s trade and current account surpluses are expected to increase in July
•UK: We get the Halifax house prices for August and the forecast is for a slowdown in pace
•From Canada, we get building permits for July but no forecast is available.
•This week’s highlights
•On Tuesday, Bank of Japan releases the minutes of its August 7-8 monetary policy meeting. And we get the industrial production from the UK
•On Wednesday, we havethe testimony on the August inflation report of Bank of England Governor Mark Carney and other MPC members to the Treasury Committee

•On Thursday, the spotlight will be on the Reserve Bank of New Zealand policy meeting

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