Currency Note Sterling

Sterling has a slightly better day

By Smart Currency September 11th, 2014

Sterling rallied across the board yesterday for the first time in a number of weeks as the most recent opinion poll showed the ‘NO’ vote in the ascendancy. Investors also looked beyond the upcoming referendum on Scottish independence. With the pound struggling since the end of July, yesterday’s inflation report hearings offered a chance for members of the Bank of England’s (BOE) Monetary Policy Committee to offer their views on the economic outlook of the UK. With BoE Governor Mark Carney outlining that the point where interest rates need to rise had moved closer, sterling found support in spite of recent uncertainty surrounding it. Carney’s statement that the BoE would implement contingency plans to support UK financial stability if needed in the wake of a ‘YES’ vote for Scottish Independence should also have eased investors’ fears.
With the major event of the week for sterling having passed, today we look to the release of unemployment claims from the US, and testimony from European Central Bank (ECB) President Mario Draghi. Either could potentially affect major movements in the markets.