Och aye the ‘no’
19 September, 2014
Following what for many is likely to have been one of the biggest and significant political events in their lifetime, the votes have been officially counted and the results for Scottish independence is a “No” and Scotland will remain part of the UK.
Yesterday we saw the financial markets staking their bets on the result as GBP rates rose throughout the day. The market was particularly volatile though, and as the polls showed it was never to be a clear cut result. With rates jumping all over the place throughout the day at times, the general movements were pound positive to show that most (certainly in the financial markets) were indeed gambling on the “no” vote. As such despite the big news this morning much of this was priced in to the pound as this morning we have only seen the pound gain around 30pips against the Euro and around half a cent against the US Dollar. At present therefore we are at a 2 year high against the Euro, albeit for the fairly strong dollar currently we are seeing highs of over a fortnight ago.
Certainly should the vote have been a “Yes” we would have seen rates plummet so those who took out positions prior to the vote were wise to do so. Despite the result today we effectively awake to the same UK as we had last week, so even the small spike we are seeing at present could well be excitement and sentiment.
Any of you with upcoming requirements may well to take advantage of this opportune time as we may well see now after all the excitement, investors realising that it is still the same UK economy and much of the push in prices subside as it is likely simple inflation due to speculation on positions.
Speak to you Currency Index broker today for some friendly and professional guidance in how to get the most out of our transfer. Ask us about forward contracts – a great way to fix rates and protect your spend before the UK and indeed the rest of the financial world realises the music has stopped, the party is over and it is back to business as usually in the U.K.
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