Cable Fills Gap as Latest Poll on Scottish Independence Favors a “No” Vote
September 12th, 2014 Guest post by Jay Hawk at Orbex.
Sterling is currently trading slightly lower against the U.S. Dollar in Asia, after rebounding yesterday in the wake of results from the latest YouGov Plc poll. The same poll released results in last week’s Sunday Times reflecting that nationalist Scots had taken the lead for the first time this year.
The results of the poll sent Cable significantly lower, gapping down on Monday’s opening and closing off -1.46 percent for the day. After consolidating at a slightly higher level on Wednesday, the rate has rallied significantly closing the gap made on Monday, Cable now has a positive outlook near term.
Also supporting Sterling was the BOE’s annual Inflation Report. Governor Mark Carney wrote, “It is my judgment that, consistent with the guidance and our forecast, as the economy has continued to normalize, we have moved closer to the point at which Bank Rate will need to start to rise in order to achieve the inflation target”.
The results of the latest YouGov Plc poll showed a 52 percent versus 48 percent of Scots now leaning towards a “no” vote. After the previous results, favoring a “yes” vote, both Lloyd’s Banking Group and the Royal Bank of Scotland said they would relocate their headquarters to England.
The RBS stated that, “There are a number of material uncertainties arising from the Scottish referendum vote which could have a bearing on the bank’s credit ratings and the fiscal, monetary, legal and regulatory landscape to which it is subject”.