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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