The speculation about the Scottish independence referendum continues to dominate the headlines in the UK and also grabs a lot of headlines in foreign exchange.
The leaders of Britain’s three largest parties cancelled their schedules and made their way to Scotland to urge for the “family” to stay together. This sign of panic from David Cameron, Ed Miliband and Nick Clegg shows there is real worry and the pound reacts.
GBP/USD is now trading just above 1.6050, falling around 100 pips from the highs seen just a few hours earlier.
1.60 is certainly in sight:
Update: Cable continues the fast trading, rising to 1.6080 at the moment. The low so far has been 1.6051.
Yesterday, Mark Carney had an opportunity to shake markets when talked about a rate hike in the spring of 2015. However, the effect was short-lived as any Scotland related headline had had more of an impact.
Carney will be speaking later today once again. Will he have a strong influence on the pound? If he talks about Scotland, there is a good chance.
Support is at the round number of 1.60, followed by 1.5910. Resistance awaits at 1.6150. Volatility is certainly on the rise.
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