The coming week will see the focus fall on Thursday’s vote on Scottish independence. We have already seen rapid movements in sterling as different polls have predicted different outcomes and the uncertainty that a ‘YES’ vote has on a wide range of business and economic matters. Therefore it is likely that any market fluctuations over the coming days will be heavily influenced by the release of further polls and expect Thursday/Friday to be days when we could see significant movements in sterling’s exchange rates over very short time periods.
Aside from this, we will also see the release of minutes from the last meeting of the Bank of England (BoE)’s Monetary Policy Committee on Wednesday. With the BoE’s Martin Weale saying last week that he had expected inflation to be higher after voting to raise interest rates in the previous meeting, it will be interesting to see whether there was any call to increase interest rates in the last meeting. Before these more influential releases we see the latest inflation data on Tuesday. After disappointing figures the previous month, this is forecast to have remained stable last month.